Russian markets outperform after Trump victory

Hopes that Donald Trump’s election victory will bring about the end of economic and financial sanctions on Russia caused the country’s financial markets to outperform those in other emerging markets this month. However, we think Russian markets may have got ahead of themselves. Russia’s financial markets have been among the best performers in the emerging world this month. The stock market is up by over 5% in local currency terms since the start of November. Gains in the Russian equity market, both this month and earlier in the year, mean the MSCI Emerging Europe Index has seen the larger gains year-to-date than the broader Emerging Markets Index and the developed markets index.