Russian markets dive as global selloff picks up

The MICEX stock market (AFP Photo / Alexander Nemenov)
The Russian equities markets have dived in Mid Tuesday trade with renewed fears about the global financial system triggering further waves of selling in European markets.

After overnight Monday trade in the United States saw the S&P lose 6.6%, Asian trade on Tuesday morning was wild with the Nikkei in Japan, Kospi in Korea and ASX in Australia more than 5% lower at various times, before staging a comeback late in the day.That saw the ASX and Kospi post gains with the Nikkei close 1.68% down, the Hang Seng in Hong Kong lose 5.66% and the Shanghai Composite 0.03% down with reports of market intervention by central banks.

Asian traders were given additional mildly negative news with Chinese inflation data rising to 6.5%, in a further sign that moves to rein in inflation were still not successful and adding to fears of a hard landing for the one economy offering hope to global investors.

The moves in Asia saw oil continue its slide over the last week with Brent Crude losing more than 2% to be hovering about the $101/bbl mark in lunchtime Tuesday Moscow trade and WTO below $80/bbl having lost more than 3%.

That backdrop has made for a volatile days trade in Moscow with the dollar denominated RTS, which accounts for about 20% of trading in Russian equities, being hit more heavily.Mid-afternoon Moscow trade sees the RTS down 8.49% on the day at 13.46 Moscow time, and the MICEX down 4.61% at 13.47.