La Russophobe has moved!

You should be automatically redirected in 6 seconds. If not, visit
http://larussophobe.wordpress.com
and update your bookmarks.

Saturday, June 17, 2006

More Bad News for the Russian Market, Consigned to Dustbin with Argentina, Mexico

Bloomberg reports:

Emerging-market stocks rose after Federal Reserve Chairman Ben S. Bernanke said the U.S. economy can withstand higher energy costs. All Asian markets climbed while benchmark indexes in Russia, Argentina and Mexico fell. "Like sunshine after a long monsoon season, Bernanke finally offered a great sense of relief for investors,'' said Jean Yeh, who oversees $680 million as head of fund management at Ta Chong Investment Trust Corp. in Taipei. "Investors can expect more than just a little bounce back.'' The Morgan Stanley Capital International Emerging Markets Index advanced for a third day, climbing 2.2 percent to 704.33 as of 10:50 a.m. in New York. Colombia's IGBC index was the biggest gainer among global benchmarks.

Bloomberg also reports bad news on economic growth:

Russia's economy grew at the slowest pace in a year in the first quarter as the ruble's strength slowed exports, inflation choked investment and the government failed to encourage non-oil industries. Gross domestic product rose an annual 5.5 percent from 7.9 percent in the final quarter of 2005, the Federal Service of State Statistics said in a statement on its Web site today. The ruble has gained 6.5 percent against the dollar this year. Russia, the world's biggest energy exporter, is struggling to curb inflation after missing its 10 percent target last year and in 2004 as fuel prices soared. It's also trying to prevent a gain in the ruble from hurting manufacturers, after the currency this month rose to more than a six-year high.

No comments: