FX.co ★ Russian Stocks Approach 9-Month High

In March, the MOEX Russia Index advanced to 3,200, nearly reaching the nine-month peak of 3,326 observed in late February. This increase was fueled by the anticipation that the Central Bank of Russia (CBR) might have concluded its cycle of monetary tightening. Concurrently, market participants continued to assess the potential for relief from US sanctions. The Russian central bank maintained its policy rate without change and adopted a somewhat more positive outlook regarding the country's disinflation process, suggesting a reduced likelihood of another rate hike. Additionally, U.S. President Trump agreed to reduced concessions from President Putin concerning the partial ceasefire between Russia and Ukraine. This U.S. position aligned with the newly inaugurated U.S. administration's more amicable dialogue with the Kremlin, as demonstrated by the lack of new sanctions against Russia's oil tanker fleet in recent weeks. Satellite imagery revealed tankers loading oil at Russian ports. As a result, major Russian companies, Rosneft and Lukoil, experienced a rebound, and Sberbank's performance neared its levels prior to the Ukraine conflict.