❗ Russian indices plunge after US warns of potential invasion
Russian indices are top laggards during the European trading session today. Russian RTS (RUS50) is trading over 3% lower while scale of moves on the other European blue-chips indices rarely exceeds 0.3%. Weekend news reports can be named as a reason behind today's sell-off of Russian assets. According to media reports, the United States has shared intelligence with its European allies that show a big build-up of Russian troops and artillery along the Ukrainian border. The US military sees the risk of Russia launching an invasion on Ukraine early into next year. Russia was quick to dismiss those reports and said that it is the United States who brings soldiers to Ukraine from overseas while Russia is amassing troops on its own territory. Time will tell whether the threat of invasion is real or is it just another of Putin's stunts aimed at gauging the response of the Western countries. However, markets give the news some gravity as evidenced by a strong sell-off on the Russian stock exchanges.
Russian RTS (RUS50) has been pressured by dropping oil prices (OIL, light blue overlay)recently but today's big sell-off is fuelled by media reports on potential invasion of Ukraine next year. The index is currently testing the 23.6% retracement of the post-pandemic recovery move. However, a key support to watch can be found slightly lower at 1,625 pts, where lower limit of the Overbalance structure and 200-session moving average can be found. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
