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.
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