Interesting note on Russia from Barclays Capital on Tuesday (emphasis FT Alphaville’s):
Our understanding of the flows story has been that the massive run-up in the stock market was onshore driven - data show very limited participation on the part of foreign investors. Therefore, the ruble rally was locals selling FX to buy equities and foreign speculation in the ruble. And we are quite certain the Bank of Russia saw it this way as well, and while tolerant of the ruble rally, has been weary of it.
In which case you might expect this…
…to fall back in line with this:
Related links:
Three (deadly) Russian bears - FT Alphaville
Russia gagged? - FT Alphaville
