Ruble Weakens, Stock Market Declines, Oil Rise. Financial Market Review July 24

The yuan has renewed its local maximum on the Moscow Exchange. The Russian stock market closed with a decline in indices, and global investors were watching the ECB decision and expectations of a trade agreement between the EU and the US

Amid global volatility, the yuan rose to 11.05 rubles, the dollar and euro also strengthened against the ruble. The ECB kept key rates unchanged, pointing to the remaining risks in the eurozone economy. The Moscow Exchange and RTS indices fell by more than 1%, and Brent and WTI oil prices showed moderate growth.

Currency

The Chinese yuan exchange rate rose on the Moscow Exchange during Thursday's trading session. By 19:00 Moscow time, its rate was 11.05 rubles, which is 10 kopecks higher than the closing level of the previous trade.

The official exchange rate of the US dollar against the ruble, announced by the Bank of Russia on July 25, increased by 0.41 rubles and amounted to 78.86 rubles, the euro exchange rate increased by 1.55 rubles and amounted to 93.34 rubles.

The Central Bank of the Russian Federation calculates official rates based on data from financial statements of credit institutions based on the results of interbank conversion transactions on the over-the-counter foreign exchange market.

On the global currency market, the dollar index against a basket of six major currencies (DXY) rose slightly and by 20:30 Moscow time was around 97.3 points.

The Governing Council of the European Central Bank (ECB) has decided to keep three key interest rates at their current levels, the regulator said in a statement.

According to the statement published following the meeting of the ECB Governing Council, the base interest rate was left at 2.15% per annum, the deposit rate is 2%, and the ECB short-term loan rate is 2.4%.

Further decisions on monetary policy will be based on the forecasts for inflation and associated risks, the press release following the meeting said.

New tariffs and expectations of additional tariffs, a stronger euro and geopolitical uncertainty are holding back investment in the eurozone, European Central Bank (ECB) President Christine Lagarde said at a press conference following its meeting on Thursday. Lagarde noted that risks to the eurozone economy remain, with one of the main ones being a further escalation of global trade tensions, which could weaken European exports and limit investment and consumption.

The regulator is monitoring the progress of trade talks, but is not changing the economic forecasts announced in June, Lagarde said.

Stock

The main trading session on the Moscow Exchange ended with a fall in the main indicators. The Moscow Exchange Index fell by 1.2% and closed at 2807 points. The RTS Index fell by 1.7% and closed the trading session at 1121 points. The main indicators of the American stock market showed mixed dynamics in the first half of the trading session. By 20:30 Moscow time, the Dow Jones Industrial Index had fallen by 0.4%, the S&P 500 Index had added about 0.3%, and the NASDAQ-100 had risen by 0.4%.

Oil

Oil prices rose slightly on Thursday evening. The price of Brent oil futures on London's ICE Futures exchange was around $68.5 per barrel by 20:30 Moscow time. The price of WTI oil futures on the New York Mercantile Exchange by this time was around $65.5 per barrel.

Sentiment is being boosted by reports that the EU is moving closer to a trade deal with the US that would impose a 15% tariff on European imports to the US. If no agreement is reached, Brussels is prepared to impose higher tariffs on US goods worth €93 billion a year.