Posted on 10/03/2008 10:13:32 AM PDT by Schnucki
Regulators shut down Russia's benchmark stock exchange, RTS, for an hour after shares plunged.
Stocks had opened lower, after a torrid trading session on Thursday in the US amid fears over the success of a federal bailout plan to stave off a recession.
The RTS index dropped 7.1% to 1,070.5 points before trading was halted.
The MICEX exchange - where most of Russia's trading takes place - plunged by 6.9% to 916.7 points. Mining company Norilsk Nickel dived by 12.2%, state-owned oil major Rosneft by 7.1% and private oil company Lukoil by 6.1%.
Stocks in the US plunged in the previous day's trading on the back of disappointing economic data, including signs of rising unemployment. Oil prices dropped overnight to below 94 US dollars a barrel.
The US House of Representatives will vote for a second time on the government's bailout plan for banks, after rejecting it earlier this week.
(Excerpt) Read more at express.co.uk ...
They must share server space with the Congress.
Foriegn money is fleeing Russia for the safety of the American Markets. It’s VERY telling of what is going on, and why this bailout SHOULD NOT BE PASSED!
I seem to recall Russia has TWO stock indexes. One base upon the dollar and one on the ruble. Since neither currency is mentioned in the article, I’m assuming the ruble is folding like a cheap lawn chair.
Just anecdotal evidence of the Russian crash. We own land in Montenegro (Yugoslavia) and for the past several years the Russians have been gobbling it up. It’s prime waterview. They’ve been paying outlandish money for this land. Honestly, it’s been great. Well..in the last two months everything stopped. Just came to an end. It sure was fun while it lasted!
Russia is one big scam of an economy. W/O oil revenue, it would be in economic turmoil.
Wow, first they lose out on their efforts to ‘talk up’ the price of oil (recall their hopes it would go to $250 with windfalls for Gazprom) and then their Olympic weekend debacle with Georgia (presumably oil related as prices fell) and now market drops with some foreign money seeking other (including American) markets. I hate to think this makes them more desparate and more likely for more of the same - with their warship shows of strength and interest in partnering with Venezuela (and the thug Chavez) on nuclear projects. I hate to see their ‘reversion’ to commie ways.
With the passage of the bailout bill they know that Russia now has another communist rival.
Open up a Royal Bank of Czarists branch here in good ole USA today and transfer all their trash assets here by Monday and whattaya know, we will buy them with the Paulsen Unlimited Securities & Socialists Youth Society bailout fund.
The dollar strengthened this month against both the ruble and Euro. $1 = 25.92 rub $1 = .72 Euro
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