The record collapse of stock indices on Black Thursday, February 24, is comparable to the 2008 mortgage crisis. The indicators collapsed in the range of 45-50%, and the ruble devalued against the dollar and the euro. Experts allow a further drawdown of the Moscow Exchange index by 20-30% to 1250-1500 points, but they are not taken to give accurate forecasts.
During trading on Thursday, the ruble fell to 89.6 per dollar and 99.99 per euro. Then the national currency won back part of the positions, but by the evening it dropped to 87 and 97, respectively. The price of Brent oil exceeded $105 per barrel.
The financiers noted that the situation on the foreign exchange market that day was calmer than on the stock market, where players massively closed their positions.
“The scale of the collapse on the stock exchange on February 24 is more or less comparable only to the mortgage crisis of 2008, when the Moscow exchange index sank four times from May to October, and the RTS showed a similar level of decline. The Moscow Exchange Index can still roll back to 1300 points, the RTS – to 500. And the ruble will break through 100 per dollar at the moment, but this will be the peak of its fall, ”Mikhail Kogan, an expert at the Higher School of Financial Management, shared with Izvestia.
To stabilize the situation on the financial markets, the Central Bank announced the start of foreign exchange interventions. And the press service of the government stressed that Russia has enough financial resources to maintain the stability of the financial system in the face of sanctions.
“The volume of interventions will be disclosed tomorrow, but the effect has been achieved. In the near future, the news background will put strong pressure on the markets,” said Freedom Finance Investment Company.
According to experts, the ruble usually shows less volatility than the stock market. This is facilitated, among other things, by the Central Bank’s measures to stabilize the situation on the market. It is possible that 90 per dollar and 100 per euro are important levels for the regulator. From these indicators, the dollar turned down in 2016, and the euro in 2014, Oleg Syrovatkin, a leading analyst at Otkritie Investments, recalled.
Read more in the exclusive Izvestia article:
“Point and Meaning: Can Stock Indices Still Crash”
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
