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Stocks, dollar hold poise as investors eye Russia developments after shocking Wagner uprising against Putin is called off

Jun 26, 2023, 18:11 IST
Business Insider
Wagner Group fighters deployed in Rostov-on-Don.REUTERS/Stringer
  • Investors shrugged off the Wagner Group's attempted uprising in Russia ahead of Monday's opening bell.
  • US stocks and the safe-haven dollar both traded flat, while gold prices edged higher.
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Investors appeared to shrug off a momentous weekend of global news ahead of Monday's opening bell, with Yevgeny Prigozhin's mutiny U-turn likely preventing widespread market chaos.

Futures for the S&P 500 and Nasdaq Composite fell just 0.1% in premarket trading, while the Dow Jones Industrial Average was on course to trade roughly flat at last check.

Meanwhile, the US Dollar Index – which tracks the greenback against a basket of six other currencies – slipped around 0.2%, while the price of fellow safe-haven asset gold rose 0.6%.

Oil benchmarks, which have proved particularly sensitive to news coming out of Russia in the past due to the country's status as the world's second-largest exporter, were also relatively unchanged, with Brent and West Texas Intermediate crude futures both up about 0.5%.

The market moves come after Wagner Group mercenaries mutinied Saturday, taking control of the southern Russian city of Rostov-on-Don – which Vladimir Putin called a "betrayal" and "a stab in the back".

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But the group's chief Prigozhin ordered his troops – who were within hours of Moscow – to turn back from marching on the Russian capital later on Saturday, claiming he didn't want to shed a drop of Russian blood.

The Wagner boss will be exiled to Belarus but won't face further prosecution, according to a Kremlin spokesperson.

Prigozhin's sudden truce with Putin likely calmed investors' nerves, according to strategists.

"The uprising in Russia could have sent shockwaves across equity and commodity markets but an apparent U-turn has meant only marginal volatility rather than a full-blown correction," AJ Bell investment director Russ Mould said Monday.

But commodity analysts also warned that crude prices could be squeezed higher while the market waits to gauge the longer-term impact of the Wagner rebellion.

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"We are likely to see a marginal uptick in oil prices in the coming days, if the situation does not deteriorate further," Jorge Leon, a senior vice president at Rystad Energy, wrote in a note to clients Sunday.

Read more: Inflation is finally cooling — but the Wagner Group's attempted mutiny in Russia may send it back up, analysts warn

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