Russia-focused equity funds had their first outflows in 11 weeks on concern the Chinese economy is slowing and Europe is struggling to contain its debt crisis, UralSib Financial Corp. said, citing EPFR Global data.
Outflows from Russian funds reached $40 million in the seven days to April 11 after cumulative inflows of $1.3 million in the prior 10 weeks, the data compiled by Cambridge, Massachusetts-based research firm EPFR Global show.
“The markets are obviously at a crossroads these days with concerns around China on one hand and weak data from Europe and positive data from the U.S. on the on other,” Leonid Slipchenko, a senior analyst at UralSib, wrote in a report.
Oil, Russia’s biggest export, fell as much as 0.4 percent to $103.18 a barrel in New York after government data today showed China’s gross domestic product growth slowed to 8.1 percent from a year earlier in the first quarter after an 8.9 percent gain in the final three months of 2011. Saudi Arabia, the world’s biggest crude exporter, isn’t happy with prices and is working to reduce them, Oil Minister Ali al-Naimi said today.
Russia’s benchmark Micex index (INDEXCF:US) rallied 8.2 percent in the first three months of the year, the biggest quarterly gain in more than a year, on signs the global economy recovery is spurring demand for commodities. The gauge trades at 5.5 times analysts’ earnings estimates for member companies, below the 11.8 ratio for the MSCI Emerging Markets Index.
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