Following a phone call between Presidents Vladimir Putin and Donald Trump, the Moscow Exchange opened with a surge in Russian stocks. Reports indicated a significant jump of 6.6 percent in the RTS and MOEX indices within the first minute of trading, continuing the rally from the previous evening. The MOEX index quickly adjusted to 3,224.38 points, with the RTS following suit at 1,080.03.
By mid-morning, the MOEX index stood at 3,148.14 points, while the RTS reached 1,057.31. The market capitalization of Russian stocks, as measured by the MOEX index, hit 7.05 trillion rubles by 9:00 a.m., marking an increase of 0.5 trillion rubles since the close of trading the day before. Notable gains were seen in major Russian companies, with Novatek leading at 9.6 percent, followed by Gazprom at 8.4 percent, and Rostelecom and Aeroflot both at 8.2 percent. Rosneft, Sberbank, and Lukoil also posted strong increases at 7.6 percent, 7.5 percent, and 6.9 percent, respectively.
Simultaneously, the U.S. dollar experienced a decline to 89 rubles on the Forex market, marking its lowest level since September 2024. Ekaterina Krylova from the PSB Analytics and Expertise Center attributed the market rally to renewed geopolitical optimism following the Putin-Trump conversation. Yaroslav Kabakov, the strategy director at Finam, echoed this sentiment, highlighting the potential for restoring international transactions critical for export-oriented companies.
Analysts pointed to discussions of a potential settlement in Ukraine and Trump’s mention of a peaceful resolution as factors driving investor confidence in de-escalation. The prospect of negotiations to end the conflict in Ukraine sparked hope among investors for improved stability and international cooperation, fostering a positive outlook in the market.
The positive market response to the Putin-Trump call underscored the impact of political developments on financial markets, reflecting the interconnected nature of geopolitical events and economic performance. As geopolitical tensions ease, investors are optimistic about the potential for increased stability and trade opportunities, which bodes well for the future performance of Russian stocks and the broader financial landscape.
In conclusion, the swift and substantial market reaction to the Putin-Trump call exemplifies the importance of geopolitical dynamics in shaping investor sentiment and market trends. The implications of such high-level diplomatic engagements on financial markets highlight the interconnectedness of global politics and economic activities, emphasizing the need for investors to closely monitor geopolitical developments for potential investment opportunities and risks.
