Russian exchanges grow up in a hurry before the new year

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The Russian stock market from the opening shows is not a bad growth. Optimism of investors is connected with yesterday’s rise in the us stock market. And market participants will be to win back the suspension of the decline in oil prices. Record production and exports of liquefied natural gas has significantly supported the country’s budget. But if OPEC cuts will be made, the price of WTI is expected to rise to 50-60 dollars a barrel, while Brent is expected to grow to 58-70 dollars per barrel next year. The organization of countries-exporters of oil (OPEC) and its allies, including Russia, agreed at a meeting earlier this month about the restriction of output by 1.2 million barrels per day since January.
Oil production has reached or almost reached a record level in the United States, Russia and Saudi Arabia, with the US pumping 11.6 million Barrels a day of oil, more than Saudi Arabia and Russia.
While U.S. sanctions limit the sale of oil in Iran, Tehran said Wednesday that his private exporters, “no problem” with the sale of oil and 3 million barrels may soon be sold to non-state traders. Markets need more specific evidence of improving fundamentals and the recovery of the balance between supply and demand before the price of oil reached a real bottom.
Our economy is heavily dependent on the oil and gas sector. Therefore, many major market participants assess their risks given the current conditions of the oil market. Overall the stock market looks not bad. But on the eve of perhaps the profit taking that can return the index value of Masuri to 2300,00.
The us stock market closed in the green zone. The stock soared, offsetting any losses on Christmas eve, when the White house eased some market concerns about the future Chairman of the Federal reserve system Jerome Powell and purchases at the peak until the very end. The Dow rose 5%, exceeding 1000 points, while the S&P 500 index jumped 4.9%. Technological Nasdaq Composite surged 5.8%. Economic adviser to the White house Kevin Hassett said that the work of Powell was not under threat.
In the last few days President Donald trump has repeatedly criticized the fed. “I think the market realizes that the fed is open to more flexibility,” said Brett Ewing, chief market strategist at First Franklin Financial Services. And these words have influenced the actions of large investors who decided to buy up shares at good discounts. Before the New Year remained a matter of days. After significant growth in U.S. markets, particularly conservative members will try to lock in the gains, not to leave open positions for the holidays. But long-term investors, taking advantage of the opportunity to partially set up the investment portfolios for the year 2019.
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Gaidar Hasanov
Expert
“International financial center”