MOSCOW: The Russian rouble firmed in early trade on Wednesday and stock indexes moved higher, shrugging off concerns about more sanctions against Russia over its conflict with Ukraine.
European politicians raised the possibility of new sanctions against Russia to punish it for capturing three Ukrainian vessels at sea. U.S. President Donald Trump said he could cancel this week's meeting Russian President Vladimir Putin.
The rouble gained 0.4 percent to reach 66.82 against the dollar at 0706 GMT, after slipping to a low against the U.S. currency this month of 68.28 on Nov. 14.
The rouble was 0.4 percent stronger against the euro at 75.40.
Putin and Russia's top officials, including Central Bank Governor Elvira Nabiullina and Finance Minister Anton Siluanov, will speak at an annual economic forum in Moscow on Wednesday.
Despite increased geopolitical woes, Russia managed to raise money on the global market by placing a 1 billion euro Eurobond with a 3 percent yield.
The finance ministry is in focus again on Wednesday as it is set to test market appetite for its OFZ bonds at two auctions.
Demand for OFZ treasury bonds is seen as a gauge of market sentiment, given uncertainty about whether Washington will impose sanctions on holdings of Russian state debt.
The U.S. Federal Reserve is in focus also as its Chair Jerome Powell's is set to deliver a speech after the main trading session in Russia.
Brent crude oil, a global benchmark for Russia's main export, was up 1.4 percent at $61.06 a barrel, recovering from this year's low of $58.41 hit last week and lending support to Russian stock indexes.
The dollar-denominated RTS index was up 0.7 percent to 1,106.3 points, and the rouble-based MOEX Russian index was 0.3 percent higher at 2,345.8 points.
The RTS index is likely to consolidate around the 1,100-mark in the short term as Brent crude futures rebounded above $60 per barrel but foreign investors may cut exposure to Russian assets before the Fed statement, OLMA brokerage said in a note.
Looking forward, Russia stocks still have a chance to climb higher by the end of this year, a Reuters poll showed.
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