Foreign investors more actively Russian
Russian stock indexes continue to rise with the opening of the market, however, careful, with deep setbacks. This is due to investor concerns about global risks. A possible recession in the United States and the uncertain situation in the UK will continue to raise concerns and to reduce the activity in risky issuers.
Oil prices rise further, allowing you to keep the market. In this regard, it is possible to pay attention to the following company. Tatneft (Pref.) can rise to +1.2 percent, “RussNeft” – +1,5%, Surgutneftegaz (Pref.) – +2,3%, “Gazprom” can be higher to +0.6 percent. From other papers today will be an interesting Norilsk Nickel, which can add +1%. X5 Retail Group could grow by +0,8%, Sberbank – by +1,3%. ALROSA will be useful for your speculative transactions, the company may increase by +0.9%.
The Russian ruble is a little weak, but holds firm. The effect of the placement of OFZ Treasury was neutral, as global risks persist. Concerns about sanctions, which promised the West in the coming days, will be possible to deter major investors. Therefore, the main Russian stock indexes will be under pressure.
At the close of the NYSE, the Dow Jones Industrial Average gained 0.36% and the S&P 500 index rose 0.36%, the NASDAQ Composite rose 0.34%. Growth US stock indexes were helped by optimism about progress in trade negotiations, the U.S. and China. But fears of a slowdown in economic growth after a decline in GDP growth in the fourth quarter limited the daily increase.
Data showed that the domestic economy slowed more than expected in the fourth quarter, and corporate profits are unable to grow for the first time in two years. The Federal reserve refused to predictions with any interest rate rises this year and the yield curve of US Treasury bonds rolled over for the first time since 2007. The benchmark 10-year yield increased from 15-month lows on Thursday, but the curve continued to invert, which can indicate a recession in one or two years.
Investors welcomed the fed’s actions, but they are now more concerned about the weakening of incomes and economic prospects. Started to research whether this is the end of the cycle. My answer is: it’s not the end of the cycle, but it remains a little.
In the course of negotiations with the United States, China has put forward proposals on several issues, for example, wanted to discuss the forced transfer of technology. Economic White house adviser Larry Kudlow said that Washington might cancel some fares in Beijing, leaving the other in place as part of the enforcement mechanism of the transaction.
Senior US officials arrived yesterday in the capital of China for a new round of trade negotiations, followed by a discussion in Washington next week. Trade-sensitive industrial shares rose 0.6%. As a result, the US securities rose after the close on Thursday due to the growth in the sectors of basic materials, industry and Finance.
“International financial center”