The Russian stock market surged as reports of a likely victory for Donald Trump in the U.S. presidential election buoyed investor sentiment. Trump, the Republican candidate, declared victory after key wins against Democrat Kamala Harris in crucial battleground states. The rally in Moscow’s markets saw significant gains in shares of major Russian companies as investors anticipated a potential thaw in U.S.-Russia relations.
State energy giant Gazprom’s stock climbed 5% in morning trading, with other energy companies like Lukoil and Rosneft experiencing jumps of 2.8% and 3%, respectively. Diamond producer Alrosa saw its stock rise by 5.3%, and national airline Aeroflot experienced a 5.9% increase. Tech giant Yandex, often called “Russia’s Google,” rose by 2.8%, while retail leaders M.Video and Ozon posted gains of over 6%. The Moscow Exchange index (MOEX) was up 3.4%, and the RTS index, which is dollar-denominated, rose by 3.3%.
Analysts explained the market boost, saying Trump’s expected win could be favorable for Russia, as he has pledged to reduce tensions surrounding the Ukraine conflict. Mikhail Zeltser from BCS World of Investments said there was “timid hope” for a shift in U.S. foreign policy, while Aleksey Antonov of Alor Broker suggested that Trump’s victory would be the “lesser evil” for Russia, potentially spurring further stock growth. Some expect Trump’s win to lift stocks that have been heavily affected by Western sanctions related to the Ukraine crisis, including Gazprom and Aeroflot.
However, some experts cautioned that Trump’s policies could also introduce new challenges for Russia. His criticism of Russia’s de-dollarization efforts and potential protectionist policies might lead to tensions with China, Russia’s key trade partner. As vote counts continue, Trump declared victory in Florida, remaining just three electoral votes short of the 270 needed for a definitive win.
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