Russia Closes Stock Market Until Friday, RSX Tumbles
The Russian main stock exchanges were all ordered to be closed for a second day Thursday as Russian President Dmitry Medvedev is eagerly trying to defuse the chaos that has persisted. 500 billion rubles ($20 Billion) was injected into the financial sector today as a result.
Confidence in Russia has been low especially as memories of the 1998 financial collapse loom in all investors minds. Trading was first suspended Wednesday after a 6.5% fall occurred in the RTS which is one of the leading Russian indices.
The best way for investors to get involved in the Russia action is to short the Market Vectors Russia (RSX) which trades here in the US. The exchange traded fund hit a high of nearly $60 back in May and has since fallen all the way to $25.
We can only wonder what would need to happen for the US stock market to shut down for two full days…
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That is wild! I think that the Dow would have to drop 20% in a single day for the market to actually close, not positive though.
Yes, there are limit breakers that have to be hit, the first is at 10%.
Not that it matters too much but RSX is about 40% weighed in commodities which have gotten pounded recently, this has added to the collapse of this ETF.