Russian stock market falls in the sanctions a panic

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The Russian stock market began to decline due to the fact that us senators introduced a new bill. Again talking about sanctions against Russia. They are directed against the banking sector, and the production of liquefied natural gas (LNG). However, you should understand the difference between the bill and the law itself. In fact, investors ‘ fears are premature.
In connection with this news the shares of Sberbank and VTB Bank declined by 3%. Investors will try to look for protective assets for investment, in particular among stock companies “the pole” and “Surgutneftegaz” – they can grow on average by 2.3% in the short term.
Plus also remain securities of the following companies. Norilsk Nickel will continue to increase by +1,4%, “Polymetal” will increase by +0.9%, Tatneft may slightly added 0.4 percent. Despite the panic caused by possible sanctions against Russia, the ruble is kept confident. And it will strengthen further when the concerns subside, and all will see the difference between the probability of the threat and its implementation.
The oil market also supports our country. Oil prices today in Asia increased as it is expected that negotiations between the US and China will be successful. Positive data for China was also named the support.
Wall street closed higher on Wednesday. Investors ‘ optimism was fueled by hopes for a successful completion of the negotiations. Favorable data on inflation indicate that the Federal reserve will keep interest rates at a stable level in the near future. All three major US stock indices strengthened. For the second consecutive day, the S&P 500 closed above the 200-day moving average, a key technical level.
Stocks fell slightly in the middle of the trading session after a morning tweet, U.S. Senator Marco Rubio. He stated that he will introduce a bill on the taxation of corporate buyouts. Treasury Secretary Steven Mnuchin hopes for a “productive” meeting on the negotiations between the US and China. Investors are waiting for this. They also want to see signs that the economy is growing at a healthy pace, not heating up inflation.
The U.S. labor Department announced that consumer prices was unchanged for the third month in a row. This suggests that the fed may leave interest rates unchanged. The energy sector showed the highest growth due to increase in oil prices since the end of January.
Groupon fell by 11.1%, which was one of the biggest losses on the Nasdaq, the decline in traffic led to a fall in profits in the fourth quarter.
Pharmaceutical company Teva Pharmaceuticals Industries lost 7.8 percent after a weaker-than-expected forecast 2019 – blame the competition for brand-name drugs. General Electric (NYSE: GE) rose 3.9% in 2018, the conglomerate had registered most of the orders for power generation gas turbines.
Levi Strauss & Co. has filed for an IPO after 30 years of private business. Competitors Abercrombie & Fitch, Gap (NYSE: GPS) and American Eagle Outfitters (NYSE: AEO) will lose. Shares of Cisco Systems (NASDAQ: CSCO) increased by off-exchange trading after posting quarterly results that exceed expectations, as the network equipment maker has benefited from the transition to the new company.
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Gaidar Hasanov
Expert
“International financial center”