This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7624802.stm
The article has changed 7 times. There is an RSS feed of changes available.
Version 4 | Version 5 |
---|---|
Russian stock exchanges suspended | Russian stock exchanges suspended |
(about 1 hour later) | |
Russia's two leading stock exchanges have been suspended automatically for the second time in several hours after share prices again rose too sharply. | |
Trading was halted on the RTS and Micex indexes within an hour of opening. They then reopened only to close again after rising to 25.4% and 20.2% respectively. | Trading was halted on the RTS and Micex indexes within an hour of opening. They then reopened only to close again after rising to 25.4% and 20.2% respectively. |
The indexes were suspended on Thursday after huge falls, prompting the state to pump billions of dollars into banks. | The indexes were suspended on Thursday after huge falls, prompting the state to pump billions of dollars into banks. |
Markets in Asia also rallied strongly after news of a US rescue plan emerged. | Markets in Asia also rallied strongly after news of a US rescue plan emerged. |
On Thursday, US officials said they were negotiating with Congress on a comprehensive plan to rid banks of the bad debts that are at the "root" of the devastating global financial crisis. | On Thursday, US officials said they were negotiating with Congress on a comprehensive plan to rid banks of the bad debts that are at the "root" of the devastating global financial crisis. |
Afterwards, both Republicans and Democrats suggested an agreement was close. | Afterwards, both Republicans and Democrats suggested an agreement was close. |
Back on 'normal course' | |
The big gains on the Russian Trading System (RTS) index and Moscow Interbank Currency Exchange (Micex) indexes came only a day after they were suspended in response to losses not seen since Russia's economy collapsed in 1998. | |
The statements about the pouring of money into the Russian financial system and the series of meetings that took place undoubtedly calmed [the situation] Aleksey RybnikovHead of the Micex Russia bullish over market crisis | |
The Micex fell 25% in only two-and-a-half days, leaving it more than 55% down on its May peak. | |
The head of the Micex, Alexei Rybnikov, said the continued falls on the Russian stock markets had been counteracted by the government's decision earlier this week to pump $44bn (£24bn) into the banking system. | |
"The statements about the pouring of money into the Russian financial system and the series of meetings that took place undoubtedly calmed [the situation]," he told Russian channel Vesti TV. | |
Analysts estimate that $36bn (£19.8bn) in foreign investment has left Russia since early August, according to the Reuters news agency. | |
'No systemic problems' | |
Earlier, Prime Minister Vladimir Putin told international investors that the recent financial turmoil showed Russia needed to modernise its free market economy rather than roll it back. | |
"Our policy, our basic approaches remain unchanged," he said in a speech at an economic forum in the Black Sea resort of Sochi. "We are betting on private initiative, freedom of enterprise and rational integration into the world economy." | |
There will be no politically motivated market closures or a break-up of economic ties by Russia Vladimir PutinRussian prime minister Rice criticises 'isolated' Russia | |
Mr Putin said his country's economy was much more developed than before and had a much higher safety margin. | |
"We have no systemic problems in the Russian economy. All basic economic indicators are alright," he said. | |
High oil prices helped Russia recover from the economy's collapse in 1998. Analysts say the country is now virtually free of debt, boasts massive currency reserves and has a more diversified economy. | |
The prime minister also said any attempt to throw his country back to the times of the Cold War was a direct threat to Russia's economic modernisation project, and insisted: "Confrontation is not our choice." | |
"There will be no politically motivated market closures or a break-up of economic ties by Russia," he added. "We are thinking about other things, first and foremost about how to kick-start new factors of economic growth." | |
Mr Putin was speaking a day after the US Secretary of State, Condoleezza Rice, said Russia was on a "one-way path to isolation and irrelevance" because of its invasion of Georgia last month. |