Oil helps Russian stocks to fall

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The Russian stock market will continue to decline against a background of uncertainty about the oil market. Since the negative dynamics of oil prices does not allow to significantly grow the market. Today investors will wait for the decision of the Central Bank of the Russian Federation about increase of interest rates. Saudi Arabia warned of excessive demand amid falling global stock and trade, which cloud the prospects of demand for fuel. The oil market in the fourth quarter can move to a situation of excess supply, as evidenced by the growth of stocks over the past few weeks. Meanwhile, oil markets remain relatively tight, mainly because of U.S. sanctions against oil exports of Iran, which begin on 4 November.
Financial markets suffered from a number of concerns, including a trade war with the USA rout in the currencies of developing markets, rising borrowing costs and bond yields and economic problems in Italy. At the moment, the phase of the market is forcing investors to fix profit on assets and go to the cache, because the uncertainty of the oil market, and in politics is a relatively new restrictive US sanctions against Russia do not show clear direction for profitable investments. Only some particular paper can be an interesting subject to minimize risk and which do not relate to the oil and gas sector.
The us stock market closed in the green zone on the background of good earnings reports from many leading companies. In such periods, any stock market is undergoing some UPS and downs. Rising volatility, which can reach the historical values, but it is always worth remembering that it’s just a cycle of the market, which creates prerequisites for a global collapse. A healthy level of activity of the hedge, and the recent increase in prices for Treasury bonds explain the relative calm in the volatility index. The growth in the sectors of technology, consumer services and Finance has led to growth stocks. The best performers of the session on industrial tool Dow Jones was Microsoft Corporation (NASDAQ: MSFT), which rose by 5.84%, or 5.98 points, to trade at around 108,30 at the end.
Meanwhile, Visa Inc (NYSE: V) climbed to 4.66%, or 6.26 points, to 140,52, and Intel Corporation (NASDAQ: INTC) rose by 4.46% or 1.89 points to 44,31 at the end of the auction. In the next 2-3 trading days we can expect continued growth in these securities. But as in any stock market can not do without leaders fall. The worst performers of the session were Verizon Communications Inc (NYSE: VZ), which fell 1.72% or 0.99 points, to trade at 56,43 at the closing. McDonald’s Corporation (NYSE: MCD) decreased by 1.15% or 2.04 points to 175,31, and Merck & Company Inc (NYSE: MRK) declined by 0.82% or 0.58 points, to 69 and 96. Is caution to treat them and not to climb in purchase first time. The main thing with a strong fall of the stock to follow the release of volumes fall, and after confirmation on the next trading day to enter into the purchase with a ratio of risk/profit 1:3.
Gaidar Hasanov
“International financial center”