But Russian markets surged higher despite the headwinds. Russia's dollar-denominated RTS index was up 2.8% to 975.6 points in afternoon trading, while the rouble-based MOEX Russian index was 2.5% higher at 2,380.7 points. Shares in VTB Bank led the way, advancing more than 11% after its CEO said the lender was on course to post record profits in the first quarter. Sberbank's plans, announced last Friday, for a record dividend payout on 2022 results has fuelled hopes that other state-controlled firms may follow suit. Russia's central bank, top financial executives and analysts have played down fears Russia could be hit by any global banking contagion. "We do not see a domino effect on the Russian system," central bank governor Elvira Nabiullina told a news conference on Friday after holding interest rates at 7.5%. "Our Russian financial system is much less connected with the global one," she said. Sanctions could also be playing a role in shielding the Russian market. "Due to the lack of access to the Russian market for Western institutional investors, the correlation between dynamics on the global markets and on Russia's has been disrupted. That is, there is no direct influence," Dmitry Skryabin, portfolio manager at Alfa Capital said. For Russian equities guide see For Russian treasury bonds see (Reporting by Jake Cordell and Alexander Marrow; Editing by Jamie Freed, Kevin Liffey and Angus MacSwan)
(Recasts with rouble stronger, adds analyst)
By Jake Cordell
March 20 (Reuters) - The Russian rouble edged higher
against the U.S. dollar on Monday after initially falling to
11-month lows, while Moscow's stock markets rose strongly
despite fears of global contagion following an emergency
state-backed takeover of troubled lender Credit Suisse over the
weekend.
The rouble was up 0.2% against the U.S. dollar at 76.93 at 1350 GMT after earlier slumping to 77.76, its
lowest level since mid-April 2022. The currency was 0.6% weaker
against the euro at 82.50 , and was 0.1% higher
against the Chinese yuan at 11.18 .
Global markets are on edge after UBS Group agreed
on Sunday to swallow its smaller peer Credit Suisse in a
state-backed rescue.
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