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Russian Ruble, Stocks Nosedive on Eurozone Gloom

© Sputnik / Ilya Pitalev / Go to the mediabankRussian Ruble, Stocks Nosedive on Eurozone Gloom
Russian Ruble, Stocks Nosedive on Eurozone Gloom          - Sputnik International
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The Russian ruble and stocks sagged in afternoon trade on the MICEX-RTS Exchange on Monday, following trends on European markets where Spain’s skyrocketing bond yields increased investors’ worries over the eurozone and prompted them to seek refuge in safe assets.

The Russian ruble and stocks sagged in afternoon trade on the MICEX-RTS Exchange on Monday, following trends on European markets where Spain’s skyrocketing bond yields increased investors’ worries over the eurozone and prompted them to seek refuge in safe assets.

As of 1:30 p.m. Moscow time (09:30 GMT), the Russian ruble plummeted by 43 kopecks against the dollar to 32.47 and by 27 kopecks against the euro to 39.26.

Russia’s ruble-denominated MICEX stock index nosedived by 2.38 percent to 1,381.72 points while the dollar-denominated RTS plunged by 3.69 percent to 1,340.26 points.

The Russian markets sagged in response to negative news from Europe where the yields on Spanish government 10-year bonds hit a new euro-era high of 7.5 percent on Monday on fears that one of the eurozone's biggest economies might seek a full-blown sovereign bailout.

The European markets were depressed by the reports that U.S. rating agency Egan-Jones had cut its rating on Spain for the sixth time since mid-April, rating it at double-C-plus from triple-C-plus.

"In addition to the expected austerity riots, the latest news is that Valencia and other regions will need $15 billion of aid, the senior debtholders of the weak banks will be forced to take losses and there might be some sharing of losses among all banks," Egan-Jones said in a statement, referring to possible riots that could spark up in Spain should the country approve additional austerity measures.

As of 09:36 GMT, UK’s FTSE 100 went down by 1.72 percent to 5,564 points, Germany’s DAX fell by 1.66 percent to 6,520.13 and France’s CAC 40 declined by 1.99 percent to 3,130.39.

International oil prices were steeply declining on Monday on negative news from Europe, with futures for Brent crude with delivery in September falling by 3.5 percent to $103.1 per barrel. The euro is trading 0.11 percent lower against the dollar at 1.21.

 

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