Russian stocks surged to this year’s highs in Tuesday’s trading as investor risk appetite returned to markets amid encouraging news from Europe and rising world oil prices.
The markets responded positively to a statement by European Central Bank chief Mario Draghi who said that despite S&P’s decision last night to remove the top AAA rate from the European Financial Stability Facility, designed to help eurozone countries tackle their sovereign debt crisis, Europe’s bailout fund should draw additional resources to keep its firepower.
Higher world oil prices, currently rising above $112 per barrel, also encouraged investors to buy risky assets.
Russia’s ruble-denominated MICEX stock index rose 1.70 percent to 1,489.29 while the dollar-denominated RTS was up 2 percent to 1,484.29 as of 12:35 p.m. Moscow time (08:35 GMT).
The ruble gained 32 kopecks against the U.S. dollar to 31.53 and 15 kopecks against the euro to 40.19.
In Europe, Britain’s FTSE 100 index rose 0.77 percent to 5,701.09 points, Germany’s DAX was up 1.14 percent to 6,291.16 and France’s CAC 40 increased 0.78 percent to 3,250.01 as of 08:30 GMT.