Thursday, May 17, 2012

Today's Major Market Move: Russian RTS Index Drops 5% in Thursday's Session

The Russian RTS equity index completed its 7th negative daily trading session with a 5% drop. From the beginning of that streak on May 10th up to and including today, the Russian RTS index is down an astounding 13%.

Click here to go to the live chart.
Briefly glimpsing over the composition of the RTS Index, one notices that the index is heavily skewed towards energy and commodities. Although several energy related commodity futures were down noticeably during that same period, the declines were only a fraction of the drop in the RTS index. Here's a look a top declining front month commodity futures from May 10th to May 17th:

Click here to go to the live table.
Since the action in commodities alone doesn't explain the magnitude of the drop in the index, it would make sense to also place blame on the resurgence of the European debt crisis.

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