External negativity is not allowed the Russian stock market to end the day with optimistic
At the end of day trading index Mosberg lost 0.4% to almost 2394 points and the RTS due to weak ruble sank 0.6 percent to 1115 points. Among industry indicators in the leaders of the fall were telecommunications (-0,9%) and gas and metals/mining (-0,6%).
By evening, there is a negative external background by the major Western markets: the us S&P 500 has lost 1,33% and the EC index STOXX 600 slipped by 0.79%. One of the key drivers of the fall in the United States were shares of General Electric (of -7.5%, the lows for the decade). The company has $100 billion of debt and zero free cash flow. If the company continues to lose equity at the same rate, you can lose it in a year and be declared bankrupt on formal grounds. However, there are expectations that at some point the government will intervene.
On the Russian market in leaders of falling were noted X5 (AO: of-2.1%), “inter RAO UES” (-2%) and “Yandex” (-1,9%). Better than the market was “a Mechel” (AP +2,8%; sa: +2,4%), “Enel Russia” (+2.3%) and Aeroflot (+1.9 percent).
VTB (+1,6%) bought on news that the Central Bank was moved from 2019 to 2020 from introduction of Basel III supplements the capital of Russian banks (the conservation buffer for systemic importance), so that banks were able to lend to the economy and to pay dividends.
Oil major varieties by the evening rose in price by 1.2%: a barrel of Brent cost $71,1; and WTI – $60,9. Energy Minister of Saudi Arabia said that OPEC+ evaluates the need of reducing production to balance the market 1 million barrels a day compared with October, and also the fact that now the dissolution of OPEC is not on the agenda.
In the foreign exchange market United States dollar the evening lost 0.5% to 67,7 rubles, and Euro decreased 1.1% to 76.2 RUB the Main reason for the strengthening is the increase in oil prices.
At the evening session, we expect stable ruble futures index Masuri will be under pressure from external background.