Russia’s stockmarket rally isn’t over yet

Share

• Copy link
• Facebook
• X
• Linkedin
• Whatsapp
• Pinterest

Share this article

Join the conversation

Follow us

Add us as a preferred source on Google

Newsletter

Get the MoneyWeek Newsletter

Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors

---

By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

You are now subscribed

Your newsletter sign-up was successful

---

Want to add more newsletters?

Twice daily

MoneyWeek

Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Signup +

Four times a week

Look After My Bills

Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!

Signup +

---

An account already exists for this email address, please log in.

Subscribe to our newsletter

Russian stocks jumped sharply in 2016, but this year they have slipped by 4% the second-worst showing by an emerging market after Greece. One of the key reasons for the rally was the prospect of President Trump lifting US sanctions on Moscow. "But with no signs" that he will indeed do so, says Dimitra DeFotis in Barron's, "investors are focusing on Vladimir Putin's alleged meddling in the US presidential election".

Still, it seems too early to call the end of the upswing. Trump's administration is chaotic and unpredictable, so its pro-Russian inclinations should not be written off too readily. Meanwhile, the economic backdrop has improved. The gradual oil-price recovery has boosted exports, alleviating a wrenching recession.

Growth is set to turn positive, with easing inflation providing scope for lower interest rates. Along with higher wages, that should embolden consumers: retail sales have shrunk for 26 months in a row. The government remains stable, albeit dysfunctional, and there is even talk of structural reform. The market is also extremely cheap on a cyclically adjusted price-earnings ratio of six.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up