Decline on the Moscow Exchange and the US shutdown approaching its end. Financial Market Review for November 10

The Moscow Exchange Index opened Monday trading higher, but declined by evening. The US Senate approved the first phase of the agreement that will end the US government shutdown.

Currency

The Chinese yuan rose on the Moscow Exchange during the trading session on November 10. By 7:00 PM Moscow time, the yuan was trading at 11.36 rubles, 5 kopecks higher than the previous trading close.

The official exchange rate of the US dollar against the ruble, announced by the Bank of Russia on November 11, fell by 0.21 rubles to 81.01 rubles. The official exchange rate of the euro against the ruble, announced by the Bank of Russia on November 11, rose by 0.09 rubles to 93.93 rubles.

The Central Bank of the Russian Federation calculates official exchange rates based on data from credit institutions' reports on the results of interbank conversion transactions on the over-the-counter foreign exchange market.

On the global currency market, the dollar index against a basket of six major currencies (DXY) rose and by 8:30 PM Moscow time was around 99.7 points.

Stock

The main trading session on the Moscow Exchange ended with declines in key indicators. The Moscow Exchange Index fell 0.3%, closing at 2,558 points. The RTS Index fell 0.04%, closing at 994 points.

Lukoil Oil Company has declared force majeure at Iraq's West Qurna-2 oil field after Western sanctions against the Russian oil company complicated its operations, Reuters reports, citing four informed sources.

According to the agency's sources, Lukoil sent an official letter to the Iraqi Oil Ministry stating that force majeure circumstances prevent the company from continuing normal operations at the field.

According to the agency, Iraq has stopped all cash and oil payments to Lukoil. Cash flows to the oil company from operations in Iraq remain frozen due to US sanctions until an agreement is reached that will ensure a mechanism for developing the West Qurna field and a method for making payments to non-sanctioned companies, a Ministry of Oil spokesperson said, adding that Iraq cannot cooperate with sanctioned companies.

Lukoil shares fell by approximately 3.5% following the main trading session.

Key US stock market indicators showed upward momentum in the first half of the trading session. By 8:30 PM Moscow time, the Dow Jones Industrial Average had risen 0.2%, the S&P 500 had gained about 1%, and the NASDAQ-100 had risen 1.6%.

The market is supported by hopes for an end to the US government shutdown, now in its 40th day. The US Senate took a major step toward re-funding the federal government by approving a procedural measure that should end the shutdown.

Oil

Oil prices remained virtually unchanged on the evening of November 10. By 8:30 PM Moscow time, Brent crude futures on London's ICE Futures exchange were trading at around $63.50 per barrel. By that time, WTI crude futures on the New York Mercantile Exchange were trading at around $59.50 per barrel.

This week, investors await oil market reports from the International Energy Agency (IEA) and OPEC. Furthermore, traders remain focused on the situation with US sanctions against the Russian energy sector. On Friday, it was announced that Washington agreed to exempt Russian energy supplies to Hungary via the Druzhba and TurkStream pipelines from sanctions. Hungarian Prime Minister Viktor Orbán announced this following a meeting with US President Donald Trump in Washington.