American and Russian stock markets will rise

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Russian market will open with growth due to the increase of 0.3-0.6% of U.S. and European stocks and 2% Asian indices. Investors played impact on the stock markets, the decline in Asian indices up to 12% for the month, expansion of trade war – the exchange the next trading duties between the United States and China last Friday.
Now attention will switch to the report of the American companies for II quarter. Friday will report the leading U.S. banks. The projected increase in earnings per share year-to-year. Against this background, the dollar could strengthen against world currencies. In addition, key labour statistics in the USA showed a mixed, but strong results.
Rising unemployment in the United States to 4% in June from 3.8% in may was due to an increase in the number of labour resources. At the same time, hourly wages have not grown, remained the same 2.7 percent year-on-year, and newly created jobs out of s/s have shown a steady increase, expected 190 thousand, but out of 202 thousand in June compared to 218 thousand in may. This week, along with the results for the second quarter investors will pay attention to inflation data, which if increasing will give an indirect reason for the increase in interest rates by the fed in September-December. However, investors maintained a negative rating consequences for the world economy from a trade war.
Against the background of expectations of positive outcome of negotiations on 16 July between the Presidents of the United States and Russia, the Russian market will receive an influx of foreign liquidity. The dividend cut will support. But the ruble will remain weak, due to the conversion of dividends into dollars, the currency purchases of the Central Bank for the Ministry of Finance and the seasonal weakening of the current account.
Viktor Veselov,
Chief analyst,