Russian stocks bounce 1.7 percent after Trump puts hold on additional Russia sanctions

Russian stocks bounced 1.7 percent after President Trump reportedly put a hold on plans to impose additional sanctions on Russia.

Reuters reported that five-year credit default swaps fell and Russian sovereign dollar bonds rose.

Following sanctions on Russian businessmen and their companies last week, a number of Russian assets had dipped.

“Some of the price action looked like an overreaction, for example in the Russian bonds, so you get people buying it back,” said Koon Chow, a strategist at Union Bancaire Privée.

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“If anything, the geopolitical developments will strengthen Russian policymakers’ resolve to run a very conservative economic policy, which means your economy is less vulnerable to geopolitical-related developments.”

Trump on Monday reportedly put on hold plans to impose additional sanctions on Russia for its alleged role in a recent suspected chemical weapons attack in Syria because he was not yet comfortable with putting the penalties in place.

The Washington Post reported Monday that Trump spoke with national security advisers on Sunday after U.S. ambassador to the United Nations Nikki Haley said additional sanctions were forthcoming.

Additional economic sanctions were under consideration, but Trump had reportedly not yet approved putting them in place, according to the Post.

The White House on Monday morning walked back Haley’s comments, saying the administration is “considering additional sanctions on Russia and a decision will be made in the near future.”

Earlier this month, Trump approved the expulsion of dozens of Russian diplomats in the U.S. after a nerve agent attack on an ex-Russian spy living in the U.K.