Oil price loses 1.5% as investors fear further fed action

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A barrel of oil drops significantly in price on Tuesday morning and traded at $58,72 (-1,5%). The main negative for raw material is now concluded pending action of the Federal reserve system of the United States. Opens today this year’s last fed meeting, at which with high probability the interest rate will increase by 25 basis points. However, it is not so simple. Visit Donald trump in the social network Twitter before it was reported that raise the bid until the “world is exploding” and the dollar is expensive, just “funny”.
It seems that even if the fed now raise the rate of market expectation of such a step is at least 89-90% – then followed by a long pause. But while the fed is not in session and did not comment on its future fiscal steps, investors prefer to avoid risks. Today’s trading for Brent oil will be held in the corridor of $57,50-$59,50 per barrel.
Trading on the Moscow stock exchange today opened with a decrease of 0.2%-0,3% index Mosberg against the grim external situation. Session Tuesday to reach the indicator will take place within 2345-2365 points, RTS index – in the range 1100-1115 points. In the market there is some history of the companies, but they are unlikely to afford to take the external negative.
Among the interesting corporate events today pay attention to the closing of registers “MMK” and “Yunipro” in order to receive dividends. Meetings of the Board of Directors will be held in “FosAgro”, “Norilsk Nickel” and “SIBUR Holding”.
Trading ruble on Tuesday on the Moscow stock exchange will open on a shallow decline in a basket of currencies. Negative dynamics in the oil and General cautious attitude to risk will play against the ruble. The likely range of movement in the pair dollar/ruble today will be 66,55-RUB 67,10, AV Euro/ruble – 75,50-76,45 RUB.
American exchanges closed the session Monday sale – sooner or later the bubble had burst and, it seems, his time did come. Index futures S&P traded down in the premarket 2555,25 (-0,02%). Asian site on Tuesday was trading with a primary decrease. The Nikkei 225 fell 1.8%, ASX Australia have decreased on 1,2%, Shanghai Composite has slipped by 1.2 per cent. The Hang Seng fell 1.3%.
Early Asian statistics there was a small amount. New Zealand has provided data on the index of business confidence for October where the score has improved to -24,1 points against the previous value in -37,1 points. The reserve Bank of Australia released the minutes of the previous meeting, where, however, the market has not found anything fundamentally new.
In the morning grinbek was trading with symbolic increase to RMB 6,8964 yuan per U.S. dollar (+0.01% or 0,0003). The tool is gradually increased for a second week, the people’s Bank of China probably follows closely the behavior of the fed and prepared to stimulate its economy further.
The pair Euro/dollar in early afternoon trading Tuesday slightly lower and is trading at 1,1342. The market froze – today starts a two-day fed policy meeting, its outcome is difficult to overestimate. In this light, the investors now prefer to conserve your energy to getting the facts on hand. Likely range of movement of the main currency pairs today is of 1.1315-1,1365. Macroeconomic calendar for Tuesday not eventful. Germany is to release data on the index of business sentiment IfO in December (could be worse), USA will provide statistics on the number of permits issued for new construction and the number of bookmarks of new homes.
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Anna Bodrova,
Senior analyst,
Alpari