Russell 2000 bounces back and Russia’s rate cuts

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

Hard-Hit Russell 2000 Bounces Back

• Small-cap Russell 2000 fell the hardest among equity indices.
• Indices hit bottom on March 23 after fiscal, monetary policy proposals.
• US-focused Russell 2000 has rebounded better than large-cap indices.
• Could a flare up of the coronavirus shift the narrative for equities?

Will Russia Cut Rates to Post-Soviet Record Low?

• Russia cuts rates instead of tightening policy like in past recessions.
• Stable ruble allows central bank to cut rates amid weak growth.
• Russia’s yield curve might offer clues to country’s recovery.
• Low inflation, stable currency may allow for more rate cuts.