Over $1 Billion Wiped Off Moscow Stock Market After Trump's Putin Criticism

The Russian economy was already in serious trouble due to Putin's war-focused policies. 

His intransigence - and perceived slights of Trump - appear to have finally driven the US President to make threats, which underscored the already evident implications of further conflict. JL

The Moscow Times reports:

The Moscow stock market took a sharp dive following President Trump's statement that he is considering tougher sanctions against Russia. The Moscow Exchange Index lost 1.51% in a few hours of trading and market capitalisation fell by 100 billion roubles (US$1.1 billion). The pressure intensified after reports the EU is preparing to disconnect another 20 Russian banks from SWIFT. Basic reasons for the decline lie in the Russian economy: "Most large companies have reported declines in financial performance, and some have losses. The second quarter promises to be worse." Trump sharply criticized Putin saying "he had gone absolutely crazy," and if he tried to take over all of Ukraine, it would lead to the downfall of Russia.

The Moscow stock market has taken a sharp dive following US President Donald Trump's statement that he is considering imposing tougher sanctions against Russia.

Source: The Moscow Times

Details: The Moscow Times reports that the Moscow Exchange Index has lost 1.51% in just a few hours of trading and market capitalisation has fallen by 100 billion roubles (about US$1.1 billion).

Shares in Gazprom, Russia’s largest oil and gas company, were hardest hit, falling by 3.5%. Sberbank and VTB shares have dropped by 1.5% and 2.4% respectively. The pressure intensified after reports that the EU is preparing to disconnect another 20 Russian banks from SWIFT.

 

Among the worst-affected are Sovcomflot (-2.6%), Severstal (-2%), Aeroflot and Magnit (-2.2%). Rosneft shares have fallen by 1.4%.

Russian analyst Yevgeny Loktyukhov says the situation was caused by the worsening geopolitical environment and the protracted negotiations on Ukraine.

According to Alor Broker analyst Alexei Antonov, the main reasons for the decline lie in the Russian economy itself: "Most large companies have reported a decline in financial performance, and some have become loss-making. The second quarter promises to be even worse for the market as a whole."

Furthermore, the rouble remains strong and this is hitting the revenues of exporters, who account for more than 50% of the index. Finam strategy director Yaroslav Kabakov notes: "This is causing a revaluation of companies in the metals, oil, fertiliser and agricultural sectors."

Background:

• Russian leader Vladimir Putin’s press secretary Dmitry Peskov has commented on Trump's statement, made in response to the latest airstrikes on Ukraine, that Putin has "has gone absolutely crazy".

• Shortly before that, Trump had told reporters that he was not happy with what Putin is doing, stressing that he did not understand why the Russian leader is acting like this.

• After that, Trump sharply criticised Putin on his social network Truth Social, saying that he had gone absolutely crazy, and warned that if he tried to take over all of Ukraine, it would lead to the downfall of Russia.

• Russia’s stock and currency markets plummeted on 23 April after it was reported that Ukraine ceasefire talks had collapsed.