FINANCIAL ANALYSIS

by Chris Weafer

An optimist stays up until midnight to see the New Year in. A pessimist stays up to make sure the old year leaves. Bill Vaughan

Russia takes a nine-day break from next Sunday. Trading will be very quiet everywhere this week because of the Christmas holiday and the lead up to the New Year break. Moscow’s bourses will trade normal hours all week and will also open for a session on Saturday, but trading is expected to be very light. Russia’s New Year holiday starts next Sunday and runs until January 9.

US budget talks will dominate a quiet week. The normal seasonal lull this week will be interrupted by expected intensifying talks between the US presidential administration and Congress over terms to avert the consequences of higher taxes and spending cuts scheduled for January 1. Congress will return for a special session on Thursday. How investors view progress, or the lack thereof, will dictate how all markets close the year and the stance toward risk assets when trading resumes next Wednesday.

Reviewing 2012. In this week’s Russia in Context, we review the positive and negative events that impacted the equity market in Russia in 2012, which also may affect how investors view the balance between risk and opportunity in 2013. We also list the best and worst performing DRs in 2012 (to date) and how the market has performed overall.

To access the full report, click Download Russia 2012 Review