The Moscow market's volatility hit levels not seen since last year, as stocks again fell under the thrall of bearish world news. An initial bout of panic selling dragged prices to yet another new low for 2000, before strength on Wall Street prompted the bargain-hunters to move back in.
The Turkish financial crisis has little direct economic impact on Russia, analysts say. But it again proved that in a risk-averse market, Russia tends to suffer first. The Russian Trading System (RTS) index slumped to a spectacular 11pc loss on 30 November -- its largest one-day fall since prime minister Yevgeny Primakov was sacked in May last year. Subsequent smaller drops took the index to just 141.58 points, more than 100 below its 2000 high. Analysts at Moscow's UFG brokerage cited 141 points as a crucial technical support level.
But 5 December brought a 9.6pc surge, with a 4pc jump on the following day. A rebound of more than a tenth on Wall Street's Nasdaq index, and the Dow Jones Industrial Average's move back towards 11,000 points, encouraged investors to buy Russian stocks that analysts still insist are fundamentally undervalued.
The RTS finished with a negligible …