BLBG:Russia Stocks Slide Most in Week as Oil Falls on U.S. Debt Fears
Russian stocks sank by their most in a week as oil fell on concern a failure to reach a deal on raising the U.S. debt limit may cause the nation to default, threatening the economy of the world’s biggest crude consumer.
The Micex Index of 30 stocks declined 1.1 percent to 1,709.25.2 by 11:05 a.m. in Moscow, its biggest intraday loss since July 18. Russia’s two largest oil producers, OAO Rosneft and OAO Lukoil, slumped 1.5 percent and 1.2 percent, respectively. OAO Gazprom, Russia’s natural gas export monopoly, dropped 1.5 percent. The dollar-denominated RTS Index decreased 1 percent to 1,957.79.
Crude for September delivery fell as much as $1.13 to $98.74 a barrel in New York after House Speaker Oil John Boehner told Republicans that there’s no agreement on a plan for increasing the ceiling before a default threatened for Aug. 2. Standard & Poor’s has warned there is a 50 percent chance it will lower the U.S. government’s AAA credit rating by one or more levels. Brent oil for September settlement decreased as much as 99 cents, or 0.8 percent, to $117.68 a barrel.
“Concerns over the successful raising of the US debt limit are weighing on equities’ performance,” Slava Smolyaninov, deputy head of research at UralSib Financial Corp., wrote in an e-mailed report today.
Copper, nickel, tin, zinc and steel all declined on the London Metal Exchange. OAO GMK Norilsk Nickel, Russia’s biggest mining company, lost 1 percent to 7,475 rubles.
To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
