Russian Rouble and Stocks Slide; EU Stocks Remain Steady

The Russian stock market and its currency rouble slid lower on Monday, dragged down by the threat of new US sanctions and lower oil prices.

The trembling Russian market has started since Washington implemented sanctions against Moscow on April 6. The sanctions targeted major Russian companies and the country’s most known businessmen.

A military confrontation between Russia and the United States is feared to happen after the US, along with France, and the United Kingdom, fired at Syria on Friday over a suspected chemical gas attack.

"Fears of a direct military conflict between the US and Russia have been sidelined, allowing markets to breathe easier, but only somewhat," BCS analysts in Nasdaq said.

On Monday, the Russian rouble was down 0.36 percent weaker against the dollar at 62.27 percent and down 0.37 percent at 76.80 against the euro.

The Moex index slid 1.3 percent during early morning trades in Moscow, extending its losses of more than 4 percent over the last month. Meanwhile, Russia’s dollar-dominated RTS index fell 0.5 percent to 1,098.26 points; and the rouble-based MOEX index was 0.18 percent lower at 2,171.28 points.

Shares in Rusal, the world's second-largest aluminum company which was placed on the USA’s April 6 sanction list, fell down by more than 5 percent.

According to the reports, Washington is driven to increase Moscow’s economic pressure. Both Syria and Russia denied any involvement in the suspected poison gas attack which killed dozens of people in Douma, Syria earlier this month.

European Stocks Remain Steady

On the other hand, European stocks remain steady on Monday. However, trading remains cautious as tensions between the US and Russia increases, and markets are expecting new US sanctions over Russia’s continuous support on the Syrian government.

The pan-regional STOXX 600 Index was down 0.1 percent, while FTSE index was down 0.2 percent. Germany’s DAX index remains flat.

The index' top gainer was Whitbread (WTB.L), it rose 6.2 percent. Meanwhile, the Software AG (SOWGn.DE) had the biggest loss, down 4.4 percent. Investors said that the fall was due to weaker-than-expected quarterly revenues on the company’s Digital Business Platform.

WPP advertising group (WPP.L) shares slid 5.3 percent. The drastic change happened after the company's chief executive and founder Martin Sorrell quit. WPP’s share already fell at 30 percent this year.

Russia’s metal miner Polymetal (POLYP.L) fell 4.1 percent, much higher than its peer Evraz (EVRE.L) which slid 2.4 percent. Also, Australian lender Raiffeisen Bank (RIV.VI) declined 1.9 percent.

Swiss industrial and manufacturing firm Sulzer Ltd. (SUN.S) slipped 0.3 percent. Last week, the company was freed from US sanctions related to its Russian investor Viktor Vekselberg. After unblocking the assets, the company said that the business was ‘fully back to normal’.

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