September 2, 2011 / 8:03 AM / 8 years ago

Russia markets fall, await US payrolls

 * Stocks down ahead of U.S. payrolls data
 * Rouble eases across board, strong oil prevents deeper fall
 By Nastassia Astrasheuskaya	
 MOSCOW, Sept 1 (Reuters) - Russian stocks and the rouble weakened on Friday,
tracking falls on major stock markets ahead of key U.S. employment data later on
Friday.	
 The local market followed a negative opening in Asian indexes and fed off
the U.S. market drop in the previous session, and was expected to trade in a
range for most of the day until the U.S. data is published at 1230 GMT. 	
 By 0635 GMT, the dollar-based RTS index and the rouble traded MICEX
 had lost more than 1 percent each, underperforming the broader emerging
markets index , which was down 0.6 percent. 	
 "Investors are likely to stay focused on US non-farm payroll data as the
central news event of the week, with subdued activity before the numbers are
released in the afternoon," analysts at Uralsib said in a note.	
 A morning gap down in excess of 1 percent in the Russian market is natural
as commodities and futures had taken a further hit, they added.	
 Oil prices remained strong , with Brent crude trading around $114 per
barrel, curbing losses in the commodity-influenced rouble, which fell 0.2
percent versus the dollar and the euro to 29.06 and 41.36 roubles
 respectively.	
 Versus the euro-dollar basket, the rouble lost 0.2 percent to 34.59
 , hovering in the range of 34.15-35.15, where the central bank is
believed not to be intervening. 	
 "Today, the market is likely to keep calm, as opening positions ahead of the
U.S. data is scary. Much will depend on foreign currency flows, but our market
will probably stay around 34.60 against the basket," said Roman Pakhomenko,
dealer at Lanta bank.	
 Russia's central bank bought a relatively-modest half a billion dollars in
foreign currency interventions last month, First Deputy Chairman Alexei
Ulyukayev said on Friday. The small size of the dollar buying was further
evidence that the bank has shifted towards greater exchange-rate flexibility.	
 Ulyukayev also said last month's market turmoil would not lead to a policy
shift in Russia; adding to signs that the central bank will hold rates at its
next monthly policy meeting after Brazil surprisingly cut rates this week.
 	
 The spread on Russia's dollar bonds over comparable U.S. securities,
expanded to 250 basis points from below 240 in the previous session ,
following a fall in Russia's 30-year benchmark Eurobond's yield to 4.1 percent,
a notch away from the 2011 low of 4.04 seen a month ago. 	
 	
 Russian Markets                      Latest      Net       %    Change 
                                             Change  Change   on year
         Stocks                                                      
 MICEX                        1538.54    -13.04   -0.84    -8.85 
 RTS                         1685.55    -18.31   -1.07    -6.45 
 London ADRs                942.38     -9.12   -0.96    -4.60 
 Emrg Mkt Indx             1032.36     -5.64   -0.54   -10.34 
 MSCI Russia          308.41     -0.62   -0.20    -6.72 
 Sberbank                  84.06     -1.03   -1.21   -19.31 
 VTB                          0.08     -0.00   -1.74   -25.74 
 Gazprom                    175.60     -1.75   -0.99    -9.25 
 LUKOIL                    1726.90    -11.10   -0.64    -0.87 
 Rostelecom                 179.19     -3.84   -2.10    15.05 
 Dollar/Rouble          29.05      0.05    0.17    -4.97 
 Euro/Rouble            41.37      0.10    0.23     1.63 
 Rouble basket                34.59      0.07    0.20    -1.53 
           Debt                       Bid       Ask    %Rtn    Coupon
 Russia 10-yr bond          7.96      7.85   -0.32      7.60
   Money market                       Bid       Ask   Close          
 Overnight rate               3.55      3.85    3.85          
  All data taken from Reuters at 0657 GMT.	
	
 (Reporting By Nastassia Astrasheuskaya, additional reporting by Vladimir
Abramov)	
 
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