Moscow markets tumble amid global financial turmoil
The Moscow stock exchange index dropped 4.72%, reaching its lowest level since December 2024. This decline results from global financial market turmoil, including a sharp fall in oil prices and stock exchanges worldwide.
At the start of the session on the Moscow Exchange, the MOEX and RTS indices fell by 4.72% compared to the previous day's close. This is the lowest level since December 2024. According to "Kommersant," at 8:40 AM Greenwich Time, the MOEX index was at 2,709 points, and the RTS was at 1,013 points.
The Moscow Times reports that the value of companies on the Moscow stock exchange fell by 2 trillion roubles within two days.
On Friday, the MOEX index, tracking the 43 largest Russian companies, lost 8.05% within the week, marking the worst performance since September 2022. Shares of the largest companies, such as Sberbank, Gazprom, and Rosneft, recorded significant declines.
Black Monday
The decline in indices on the Russian stock exchange is part of a broader trend in global markets, which are displaying significant losses on Monday. The Warsaw stock exchange also experienced a considerable sell-off of stocks. Stock indices are recording substantial declines, and investors are withdrawing capital from nearly all companies.
The Chinese stock market opened with a 10% drop, the largest decline since 2008.
Brent crude oil prices fell below £51 per barrel, the lowest since April 2021. Other Asian markets, such as KOSPI and Nikkei 225, have also significantly declined.
Experts from J.P. Morgan have raised the probability of a global recession to 60%.
Causes of the declines
The sharp declines in the markets are related to US President Donald Trump's decision to introduce tariffs on goods from 185 countries.
In the last two days, global markets have lost 5 trillion dollars. Among the biggest losers on the Russian market were companies such as PIK, VK, Seligdar, and Surgutneftegas, which lost between 9.2% and 10%.
