BLBG:Russian Stocks Set for Biggest Week Drop in a Month on Oil, U.S.
Russian stocks headed for its biggest weekly drop in more than a month rose as oil fell on concern failure to reach a deal on raising the U.S. debt limit may cause the nation to default, threatening demand from the world’s biggest consumer.
The Micex Index of 30 stocks dropped 0.4 percent to 1,714.27 by 12:13 p.m.in Moscow. That brings the week’s decline to 0.8 percent, headed for its biggest weekly drop since June 19. Oil producer OAO Tatneft lost 1.2 percent. OAO Gazprom, the natural-gas export monopoly, fell 0.4 percent. The dollar- denominated RTS Index declined 0.6 percent to 1,973.41.
Crude for September delivery fell as much as 55 cents to $96.92 a barrel in New York after House Speaker John Boehner delayed a planned vote on debt-limit legislation as Senate leaders stood ready to kill the measure should it get to their chamber. Prices also dropped before a report forecast to show the world’s largest economy grew at the slowest pace in a year. U.S. crude stockpiles rose for the first time in eight weeks last week, Energy Department data showed July 27.
“The longer we wait for the deal the greater the level of nervousness,” Chris Weafer, chief strategist at ING Groep NV in Moscow, said in an e-mailed report today. “A majority of traders will simply stay away until the U.S. debt uncertainty is resolved.”
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
