... the cost of raw materials, energy resources, or labor increases, companies raise prices to cover their expenses. Increased demand: If people start spending more than usual, this stimulates companies to increase prices for popular goods and services. Currency exchange rate changes: This is especially significant for Russia, as many goods are imported. A decline in the ruble's exchange rate leads to higher costs for imported goods, which also raises the overall price level. Current Inflation Situation in Russia In 2024,...

... reduction in economic activity, which may be attributed to several factors: High Key Rate: The Central Bank of Russia maintains a high key rate of 21% to control inflation... ... technological equipment, components, and supply chain challenges. Ruble Instability: Currency volatility limits planning capabilities and dampens external economic activity... ... the economy and markets: Strengthening of the Ruble: A high rate supports the ruble's exchange rate, reducing inflationary pressure and stabilizing prices for imported goods...

... markets, especially if these companies have significant operations or partnerships within Europe. In summary, the events of Tuesday, 3 December 2024, are poised to impact European financial markets through various channels, including trade relations, currency exchange rates, and commodity prices.

... policy and a recovery in global commodity demand. For Russia, as a major oil exporter, this context signifies a solid flow of export revenue and a high export price parity for fuel. In other words, the external gasoline price (based on oil prices and currency exchange rates) is rising, pulling internal prices along, especially with a weakened dampener. Concurrently, high oil prices sustain the revenues of oil companies, partly compensating for their limitations in the domestic fuel market. Gas. The natural gas market ...

... market investors, it's critical to account for this, as oil prices directly affect stocks in the oil and gas sector and the ruble exchange rate. How This Could Impact Markets The combination of so many significant events in one day can lead to heightened volatility in global markets. Investors' reactions will depend on whether expectations are met or if surprises occur: Currency markets: The morning release of the RBA minutes already slightly swung the AUD, while Bailey's speech influenced the ...