LONDON, Sept 24 (Reuters) - Russian stocks fell 1.6 percent
on Monday, adding to last week's 4 percent decline, as the
slowdown in the global economy pressured commodities prices,
while other emerging markets also weakened.
Oil and commodities prices have lost ground steadily amid a
raft of weak economic data from around the world. The latest on
Monday was Germany's Ifo business sentiment survey, which fell
to its lowest level in September since early 2010.
Furthermore, Madrid said it would hold back in seeking
external aid to finance Spanish debt, pushing up bond yields and
hurting investor sentiment.
MSCI's emerging equity index fell 0.3 percent
despite a slight rise in Chinese markets.
Moscow's dollar index fell 1.97 percent and was down
almost 6 percent from the 4-1/2 month highs hit after the U.S.
Federal Reserve announced a third round of quantitative easing
earlier this month.
The rouble fell 0.8 percent to the dollar to lead
emerging currency losses as oil prices lost $2 a barrel.
"The immediate constraints are the developments in Europe
and Spain, plus growth numbers have been under pressure.
Growth-sensitive markets are those that are most pressured, and
here Russia stands out," said John Lomax, head of emerging
equity research at HSBC.
Lomax predicted markets would stay rangebound until Spain
formally requests assistance, but he said that looked unlikely
until after the country's Oct. 21 local elections.
Most emerging currencies lost ground, with markets pricing
in rate cuts this week in Hungary and the Czech Republic, though
Romania and Israel are expected to stay on hold. The Czech crown
fell almost 0.5 percent.
Spreads on emerging sovereign dollar bonds widened 4 basis
points to 299 bps over Treasuries.
(Reporting by Sujata Rao; editing by Jane Baird)
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