U.S. stocks finished higher on Friday with all three major benchmarks scoring higher. Subsequently, Dow Jones increased 1.2% to finish at 32,151.71, S&P 500 increased 1.5% to finish at 4,067.36 while Nasdaq 100 increased 2.1% to finish at 12,112.31. The 10-year yield Treasury increased 0.131% to 3.321%. Gold spot price increased to $1,718.10 per ounce while WTI crude oil advanced $2.53 to $86.11 per barrel.
Ukrainian forces advanced in the Kharkiv region on Sunday with unconfirmed reports suggesting that Kyiv’s troops have taken towns of Velkyi Burluk and Chkalovske. The advance represents Ukraine’s biggest victory since they pushed Russian troops away from the capital Kyiv in March. Russian stock market edged higher this Monday morning with IMOEX up 1.5% at 2,426 and RTS up 0.9% at 1,274, despite of the recent decline in European naturas gas prices and a vigorous Ukrainian counteroffensive. Internet company Yandex was the best performer along with energy giants Lukoil, Rosneft and Novatek and metal producers Polymetal and Norilsk Nikel. Russian ruble remained mostly flat at the start of the week losing slightly against the Euro with USDRUB 0.1% down at 60.60 and EURRUB up 0.6% at 60.97. Russian Central Bank is widely expected to cut its policy rate by 50 bps this Thursday, 16th of September, to 7.5%, as recent CPI figures suggest full-year inflation will undershoot the Central Bank’s recent projections. 10-year benchmark ruble bonds yields were up 2bps at 8.48%. In Corporate bond news, Gazprom has started collecting bids to replace Eurobonds with maturity in March 2027 with local bonds of the same maturity. Holders of 2027 Eurobonds, whose rights are accounted in Russian depositories, would be eligible to swap bonds.
SSA opens firmer continuing last week’s trend which saw most issuers record gains overall. Oilers remain bid with demand for ANGOL (+.375) and NGERIA (+.50) picking where it left off last week. ZAMBIN (+.50) also on the rebound after a shaky trading week as the market parsed the $8.4bn cash debt relief required from creditors.