Russian stocks close deep in the red

Russian stocks closed deep in the red on Thursday, hitting fresh lows as political uncertainty in Greece and Europe’s lingering debt crisis prompted investors to dump riskier assets. The ruble-denominated MICEX closed 3.5 percent lower, at 1,287.79 points, below the psychologically important level of 1,300, hitting an eight-month low, while the dollar-denominated RTS plunged by 4.4 percent to 1,313.31, the lowest level since October 2011. The ruble fell by 13 kopecks against the dollar to 31.06 rubles and by 5 kopecks against the euro to 39.47 rubles at the close of the trading session. Investors’ fears about the spread of the political crisis in Greece continue to drive increased investor risk aversion and slumping capital markets worldwide, including Russia. Thursday’s fears have been added to by news that the European Central Bank has stopped proving extra liquidity to Greek banks until they implement recapitalization plans. In international foreign exchange markets, the euro is trading at slightly above $1.27 and may extend further losses. The price of Brent crude, a benchmark for the Russian stock market, has also continued to fall further, below $110 per barrel.