The dramatic events in Russia over the weekend dictated early trade in European markets, with major equity indices falling back and commodities inching higher at the open on Monday.
Russian mercenary group Wagner marched on Moscow on Saturday but later made a U-turn as leader Yevgeny Prigozhin struck a deal with the Kremlin.
Should Saturday’s events have taken place during open trade, one would have expected sharp volatility across stocks, energy and FX. By all accounts, traders would be surprise by the benign reaction in markets on Monday.
Nonetheless, European equities were on the back foot as trade got underway on Monday but buyers quickly stepped in. The FTSE 100 opened marginally lower and was down 0.28% at the time of writing, while the German DAX also dipped 0.2%.
Brent and West Texas Intermediate oil contracts made tepid gains on Monday as traders weighed the broader implications of Putin’s political weakness in a backdrop of slowing global growth.
“The weekend rebellion which rocked Russia has sent the price of oil higher, as traders assess the regime’s instability following the insurgency. Brent crude jumped by more than 1% before retreating a little, amid expectations of tighter supply,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
The Rouble sank against the dollar, hitting 84.5500 on Monday – the highest level since Russia invaded Ukraine.