Bloomberg News

Stock Futures Climb on China Data: Russia Overnight

November 22, 2012

Russian stock futures rose to a two- week high after a Chinese manufacturing index indicated the first expansion in 13 months, signaling economic growth is rebounding.

Futures expiring in December on the nation’s dollar- denominated RTS Index gained 0.6 percent to 142,700 during trading hours in New York, where markets were closed for the Thanksgiving holiday. Ruble futures were little changed at 31.283 per dollar.

The 30-stock Micex Index (INDEXCF) slid 0.2 percent to 1,402.64 yesterday and has lost 1.6 percent in November. The benchmark for Russian equities is little changed for the year, after tumbling 17 percent in 2011. OAO RusHydro jumped the most in more than two months yesterday as Russian President Vladimir Putin approved a cash injection for the country’s largest renewable energy producer.

“The data we saw from China implies that fourth quarter growth is actually going to be above consensus,” Julian Rimmer, a trader at CF Global UK Ltd in London, said by phone yesterday. “It’s positive, but people will want to see a bit more evidence or the Chinese easing a bit more.”

The preliminary November reading was 50.4 for a purchasing managers’ index released yesterday by HSBC Holdings Plc and Markit Economics. It compares with a final level of 49.5 for October. A reading above 50 indicates expansion.

China’s share of Russian trade rose to 10.6 percent in September from 10.1 percent a year earlier, according to Russian customs data compiled by Bloomberg.

Urals Gains

Crude oil, Russia’s biggest export earner, traded near the highest level in two days in New York amid concern that a cease- fire between Israel and Hamas, which took effect on Nov. 21, may not hold. Crude for January delivery dropped 0.3 percent to $87.14 a barrel in electronic trading on the New York Mercantile Exchange.

Brent oil for January settlement lost 0.3 percent to end the session at $110.55 a barrel on the London-based ICE Futures Europe exchange. Russian oil blend Urals crude climbed 0.2 percent to $110.28.

RusHydro added 3.8 percent to 75.72 kopeks in Moscow, or 2.4 U.S. cents, the biggest advance since Sept. 14. Trading volumes were more than double the three-month daily average, according to data compiled by Bloomberg.

Putin signed a decree approving a government proposal to provide the company with as much as 50 billion rubles ($1.6 billion) from the budget this year and allowing it to issue additional shares to increase its capital, according to an e- mailed copy of the document.

The Bloomberg Russia-US Equity Index (RUS14BN) of the most-traded Russian companies in New York rose 0.3 percent on Nov. 21 to a two-week high, led by OAO Mechel (MTLR), Russia’s biggest maker of steelmaking coal. U.S. markets resume today.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at eobrien6@bloomberg.net


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