Oil holds Russian market afloat
The new week began with the growth of Russian stock indices. Soon, however, the index Mosberg moved into the red zone, though trading under moderate pressure. The external backdrop looks negative – investors play the introduction of China tariffs against American goods and refusal to negotiate with Washington. In contrast stands the oil factor. Quotes of Brent for the first time since may, reached the level of 80.30 and aiming for fresh highs. So, in the afternoon the RTS rising 0.7%, while the index Mosberg losing 0.1 percent. The ruble strengthened against the dollar and the Euro within 0.5%.
After the initial push higher shares of “RUSAL” adjusted 1.2%, quickly recouping the reports that the U.S. Treasury gave the Russian aluminum giant a reprieve from the entry of sanctions into force in full. So, the time by which you can make transactions with RUSAL, has been extended from October 23 to November 12. Limited market reaction partly stems from the fact that the delay was quite short. Meanwhile, in response to the strengthening of the ruble, rising paper of the financial sector. Shares of “Sberbank” rise in price almost on 2%, VTB is trading slightly above the opening level. Quotes “Gazprom” reduced by 0.38%, while shares of “Rosneft” grow by the same amount.
In the near future the Russian market will continue to monitor the dynamics of oil prices, but with an eye on the external background, which restrains the deterioration of the optimism in the domestic markets. The attention of global investors will switch to the forthcoming fed policy meeting, which will determine the mood of trading platforms before the end of the week. The Russian market is still sensitive to the issue of sanctions so that players will continue to keep your finger on the pulse.
InstaForex companies group