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Stocks Boast Major Gains, Ruble Strengthens

Stocks had their biggest intraday gain in a week, the ruble strengthened for the first day in four against the dollar, and bonds rallied on Thursday as oil rose on speculation the economic recovery in the United States is on track.

Oil producer LUKoil and VTB Group advanced more than 2 percent, leading the 30-stock MICEX Index up 0.7 percent to 1,350.48 at the close in Moscow. The yield on Russia’s benchmark dollar bonds due April 2020 fell 14 basis points to 5.444 percent, the lowest level since May 18, according to Bloomberg prices. The ruble strengthened 0.7 percent to 31.04 per dollar.

Crude gained as much as 2.1 percent to $74.40 a barrel. Service industries in the United States expanded in May for the fifth straight month, showing that the recovery in the U.S. economy is broadening. Pending home resales gained 6 percent in April, according to data released Wednesday, eclipsing concern that Europe’s debt crisis will slow a rebound.

“The improved outlook for the U.S. is positive for commodity prices, which is positive for Russia,” said Peter Westin, chief strategist at Aton Capital. “But let’s not kid ourselves, positive sentiment can easily turn around. All we need is more bad news out of the south of Europe.”

Against the euro, the ruble was little changed at 38.05. The movements against the dollar and the euro left the ruble at 34.19 against the Central Bank’s target currency basket, which is used to manage swings that hurt Russian exporters.

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