Back to the black, with the red on the horizon

Russian stock market changed colour at the start of this week, leaving the red territory it entered after Friday’s EU summit. Analysts, however, warn political uncertainty in the country could change investor sentiment in the coming days.

Both the MICEX and RTS opened in the black on Monday, after they collapsed in the end of last week by 4% each. Basically it was part of the global reaction to the President of the ECB Mario Darghi, saying they weren’t going to buy back more toxic debt, explains Pavel Emelyantsev, Investcafe analyst.The rosy picture of Russian stock markets on Monday is likely to change during this week, warnsTom Mundy, chief strategist at Otkrytie, as reaction from global investors to the State Duma election results could become evident over time.“I think, a lot of clients understand the situation in Russia is wholly different from that in the Middle East and North Africa, but there are concerns that Russia’s position with the rest of the world could deteriorate,” Mundy said.Michael Stein, Director at Equity Research Sales at Otkrytie FC, however, expects Russian stock market to be mostly reacting to the events outside Russia, like the EU summit results.“Outside the political situation investors will also pay attention to the forthcoming release of 3Q GDP figures and industrial production figures for Russia,” Stein concluded.