Russian stocks bounced 1.7 percent after President Trump reportedly put on hold plans to impose additional sanctions on Russia for its alleged role in a recent suspected chemical weapons attack in Syria.
Reuters reported that Russian sovereign dollar bonds rose and five-year credit default swaps fell following Trump’s decision to delay the additional Russian sanctions.
“Some of the price action looked like an overreaction, for example in the Russian bonds, so you get people buying it back,” said Koon Chow, a strategist at Union Bancaire Privée.
“If anything, the geopolitical developments will strengthen Russian policymakers’ resolve to run a very conservative economic policy, which means your economy is less vulnerable to geopolitical-related developments.”
The Hill added:
The Washington Post reported Monday that Trump spoke with national security advisers on Sunday after U.S. ambassador to the United Nations Nikki Haley said additional sanctions were forthcoming.
Additional economic sanctions were under consideration, but Trump had reportedly not yet approved putting them in place, according to the Post.
The White House on Monday morning walked back Haley’s comments, saying the administration is “considering additional sanctions on Russia and a decision will be made in the near future.”