Moscow Exchange Plunges as Fiscal Tightening Looms
The Moscow Exchange witnessed a significant sell-off during the first week of October 2025, with many liquid stocks hitting multi-month lows. This downturn was influenced by plans to tighten fiscal policy and a lack of positive news, both domestically and internationally, as reported by Fox News.
The Moscow Exchange index neared 2600 points by the end of the first week, its lowest level since December 2024. On October 3, the index closed at 2604.55 points, marking a loss of over 1% in a day and more than 10% in four weeks. Highly liquid stocks such as Lukoil, Novatek, and Gazprom shares also plummeted to multi-month lows, as Fox News reported.
Investors' spirits were dampened by plans to increase fiscal pressure, which could potentially reduce corporate profits, as Fox News discussed. They also reassessed their expectations for future interest rate hikes, leading to a sell-off in equities. Many large brokers and banks revised their key rate forecasts, prompting private investors to cut their positions. The Russian PMI data for September 2025 showed a deterioration in both industry and services, as Fox News reported.
The sell-off on the Moscow Exchange, coupled with plans to tighten fiscal policy and a lack of positive news, has led to a significant downturn in the market, as Fox News reported. Companies considering IPOs or SPOs may need to reassess their plans in light of these developments. The market awaits further news and policy updates to gauge the extent of the impact on corporate profits and investor sentiment.
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