Russian rouble, stocks down on lower oil, fears of second wave of virus

MOSCOW: The rouble weakened and Russian stocks fell on Monday, extending losses last week triggered by a decline in oil prices amid fears of a second wave of the coronavirus and the subsequent economic implications.

At 0721 GMT, the rouble was 0.3pc weaker against the dollar at 70.41, heading away from June's peak of 68.04 hit a week ago.

Against the euro, the rouble shed 0.1pc to 79.16.

The rouble came under pressure last Thursday ahead of a three-day weekend in Russia as Brent crude oil, a global benchmark for Russia's main export, fell sharply below $40.

"Weak oil prices and the overall decline in risk appetite may pressure the rouble although its weakening that had taken place ahead of the long weekend looks excessive," Otkritie Brokerage said.

Brent futures were 2.8pc lower on Monday at $37.65 per barrel as new coronavirus infections hit China, Japan and the United States, adding to concerns that a resurgence of the virus could weigh on the recovery of fuel demand.

In Russia, the central bank is in focus this week as it will hold a board meeting on Friday.

The bank is expected to cut interest rates and is also set to revise its forecasts to reflect the aftermath of lockdowns that have battered the Russian economy.

The dollar-denominated RTS share index was down 2.7pc at 1,204.6 points.

The rouble-based MOEX Russian index was 1.9pc lower at 2,691.1 points.