Russian markets are getting slammed on Monday, with the country’s RTS index losing more than 11% by 4:2o p.m. BST (11:20 a.m. ET, 6:20 p.m. in Moscow).
“The US sanctions imposed on Russia last Friday have caused turmoil in Russia’s markets today, and financial conditions have tightened as a result,” said William Jackson, a senior emerging-markets economist at Capital Economics. “But at this stage, it doesn’t look like there will be a significant impact on growth in the economy as a whole.”
“It’s not altogether clear why Russian assets suddenly took this turn for the worse, but it seems likely that there may be growing concerns that other companies could get caught in the net,” Jackson said.
The losses are the biggest single-day fall for the index since a set of sanctions imposed in 2014 over Russia’s actions in Crimea.
Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.