| LONDON, June 13
LONDON, June 13 Russian stocks fell 1 percent on
Tuesday, faced with the possibility of a fresh round of U.S.
sanctions, although the rouble, like most other emerging
currencies, edged up against the dollar on the eve of a U.S. Fed
The U.S. Federal Reserve is widely expected to raise
interest rates on Wednesday but this is mostly priced in and is
unlikely to trigger much emerging market weakness unless
accompanied by unexpectedly hawkish language.
MSCI's emerging equity benchmark snapped a two-day
losing streak to gain 0.2 percent, lifted by heavyweight South
Korea, where shares bounced 0.7 percent after a 1
percent fall fuelled by the U.S. tech share selloff.
The rouble and Kazakhstan's tenge gained 0.3
percent, thanks to support from oil which advanced on
news Saudi Arabia would make supply cuts. China's yuan
also benefited from speculation that a Fed rate hike could see
Beijing follow suit, as they did in March.
Russian stocks were the biggest losers, hit
by steep losses in technology, financial and mining shares after
U.S. senators reached a deal on legislation allowing for fresh
sanctions on Russian mining, metals, shipping and railways as
well as on Russians found guilty of human rights abuses.
The agreement, which could come up for a vote this week,
also included a provision that would prevent the White House
from easing, suspending or ending sanctions without
"U.S. Senate (moved) a step closer to approving an extensive
sanctions bill against Russia, apparently including mining,
metals, shipping and railways, plus set in stone others imposed
by (former U.S. President Barack) Obama," said Simon
Quijano-Evans, emerging markets strategist at Legal & General
"This would certainly be farther-reaching than the
executive-order-only imposed sanctions," he added.
However, some of the falls are also down to the market
playing catch-up after a long weekend with worldwide equity
Russian assets also showed little reaction to the
demonstrations across the country on Monday, when baton-wielding
riot police broke up anti-corruption protests and detained
hundreds of demonstrators.
The political tensions in the Gulf continued to weigh on
stocks, with Qatar's index dragged lower by the Qatar National
Bank - the region's largest lender - which tumbled 1.3
percent. Qatari banks have been reeling under worries that the
embargo mounted against Doha by other Arab states could reduce
its access to foreign funding.
Riyal one-year forwards inched to record lows around 3.728
Jakob Christensen, head of EM research at Danske Bank said
markets appeared to be sanguine about the Fed's post-meeting
"Given the recent softness of (U.S.) data, they will be
quite careful in being too hawkish," he added.
For GRAPHIC on emerging market FX performance 2017, see tmsnrt.rs/2e7eoml
For GRAPHIC on MSCI emerging index performance 2017, see tmsnrt.rs/2dZbdP5
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see)
Emerging Markets Prices from Reuters
Equities Latest Net Chg % Chg % Chg
Emrg Mkt Indx 1009.95 +1.03 +0.10 +17.13
Czech Rep 1003.23 -1.23 -0.12 +8.86
Poland 2287.12 -7.89 -0.34 +17.41
Hungary 35521.32 +186.84 +0.53 +10.99
Romania 8448.05 -3.15 -0.04 +19.24
Greece 788.99 +4.39 +0.56 +22.58
Russia 1032.05 -9.44 -0.91 -10.44
South Africa 45439.01 +270.34 +0.60 +3.50
Turkey 99154.74 -287.37 -0.29 +26.90
China 3154.38 +14.50 +0.46 +1.63
India 31186.85 +91.15 +0.29 +17.13
Currencies Latest Prev Local Local
close currency currency
% change % change
Czech Rep 26.22 26.19 -0.09 +3.01
Poland 4.19 4.19 +0.00 +5.05
Hungary 307.08 307.20 +0.04 +0.57
Romania 4.56 4.56 -0.12 -0.63
Serbia 122.40 122.30 -0.08 +0.78
Russia 56.91 57.07 +0.27 +7.65
Kazakhstan 316.00 316.58 +0.18 +5.59
Ukraine 25.99 26.06 +0.28 +3.90
South Africa 12.81 12.81 +0.01 +7.23
Kenya 103.25 103.30 +0.05 -0.85
Israel 3.54 3.54 +0.16 +8.92
Turkey 3.52 3.52 -0.27 +0.05
China 6.80 6.80 +0.01 +2.15
India 64.39 64.47 +0.12 +5.52
Brazil 3.32 3.32 +0.01 -1.94
Mexico 18.14 18.13 -0.01 +14.22
Debt Index Strip Spd Chg %Rtn Index
Sov'gn Debt EMBIG 317 0 .01 7 89.84 1
All data taken from Reuters at 09:10 GMT.
Currency percent change calculated from the daily U.S.
close at 2130 GMT.
(Additional reporting by Claire Milhench, editing by Louise