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. Last Updated: 07/27/2016

RTS Slide Is Longest in 2 Years

Russian stocks slumped Thursday, with the RTS posting the longest losing streak in two years. LUKoil and Surgutneftegaz led a drop by energy producers.

"The concern is that inflation in the U.S. will lead to faster hikes in interest rates, which will slow economic growth and cut demand for commodities," said Alexei Belkin, who manages $300 million at Aton Capital in Moscow.

The dollar-denominated RTS slid 3.4 percent to 1490.64, the lowest close since April 7. The measure is down for a seventh session, the longest stretch of losses since April 2004. The ruble-measured MICEX fell 2.6 percent to 1308.48.

A U.S. government report yesterday showed that consumer prices increased last month at a faster pace than economists expected, fanning speculation that the Federal Reserve will keep raising interest rates.

LUKoil, the country's biggest oil producer, declined 4 percent to $79.20. No. 4 oil company Surgutneftegaz dropped 8.4 percent to $1.41.

Crude-oil futures in New York have retreated 8.7 percent since reaching a record $75.35 a barrel last month.

Sberbank, the country's largest lender, lost 1.2 percent to $1,551. Financial companies are among the most sensitive to changes in interest rates.

No. 6 oil company Tatneft lost 7.1 percent to $4.55. The California Public Employees' Retirement System, the largest U.S. public pension fund with $210 billion under management, voted to ban investments in nine companies that do business in Sudan, including Tatneft, on concern over violation of human rights by the government of Sudan.