MOSCOW, July 30 Moscow shares, bonds and the
rouble will most probably weaken at the open on Wednesday, after
the European Union announced its widest sanctions yet against
the Russian economy.
Brussels and Washington announced new punitive measures on
Tuesday, targeting Russia's energy, banking and defence sectors
over what they say is Moscow's support for rebels in eastern
Ukraine. Moscow denies supporting the rebels.
Russian stocks closed little changed on Tuesday, but the
dollar-denominated RTS index is down nearly 15 percent
from this year's highs seen earlier in July, before the downing
of a Malaysian airliner in eastern Ukraine.
"We're expecting a turbulent start of the trading session,"
said Oleg Shagov, head analyst at Promsvyazbank in Moscow.
The rouble-denominated MICEX closed at 1,370 points
"MICEX is likely to deline and linger near the 1,350 points
mark," said Anastasia Sosnova, an analyst at Rossiyski Capital
The new EU measures have been widely anticipated by the
markets ever since the West accused the pro-Russian rebels of
shooting down the MH17 on July 17, killing all 298 aboard.
Because of that, the decline is unlikely to match the market
slump in early March when Moscow declared its right to defend
the Russian-speaking population in Ukraine and the RTS lost $60
billion in capitalisation in one session.
Banking and financial stocks are expected to be hit however,
chief among them Russia's largest lenders Sberbank and
The financial subindex on MICEX, a market
capitalisation-weighted price index of Russia's top-tier and
most liquid financial stocks, had lost 15 percent in the past
"The news today can only add more pressure to an already
challenging operating and financing environment," analysts at
Barclays wrote in a note.
The rouble is seen weakening at least 0.6 percent at the
start of the session against the dollar, which would bring it
down to its lowest against the greenback since mid-April.
The currency closed at 35.80 versus the dollar on Tuesday
"A decline in the rouble-dollar pair towards 36.0 is likely
at the beginning," said Anton Startsev, head analyst at Olma
investment house, in a note.
The yield on Russia's benchmark Eurobond maturing in 2030
is expected to widen further. It closed at 4.7
percent on Tuesday, wider from the 4.1 percent seen earlier this
month before the threat of new sanctions emerged.
For rouble poll data see
For Russian equities guide see
For Russian treasury bonds see
Russia in graphics: link.reuters.com/dun63s
(Reporting by Lidia Kelly, editing by Elizabeth Piper)