Russian stock market morning shows signs of decline

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Russian stock market morning shows signs of decline against the background of yesterday’s protocols, the US Federal reserve, as the expected further increase in rates, and this will lead to the strengthening of the dollar. On the other hand, the oil sector also has an impact on the Russian market. The United States may have to go to sanctions against Saudi Arabia, which could increase oil prices, but the Organization of exporting countries including Russia intend to increase oil supplies to the world market.
The oil reserves in the USA increased dramatically, even when the production of oil in the U.S. fell by 300,000 barrels per day to 10.9 million barrels per day due to the influence of offshore facilities temporarily closed from hurricane Michael. Investors are concerned that Saudi Arabia might use the oil supply to respond to criticism from the United States. But Saudi Arabia has assured OPEC that it is “ready, willing, and ready” to ensure no deficit in the oil market.
Saudi Arabia and Kuwait will compete for the resumption of oil production from jointly operated fields in the near future can leave about 500,000 barrels per day. Against this background, investors looking for less risky assets for investment. Operating results NLMK (MCX: NLMK), has a positive impact on the value of securities and shares have growth potential even at +0.7%. In the steel sector, shares of Severstal (MCX: CHMF) have the potential for growth at +1.5%, Norilsk Nickel (MCX: GMKN) – 0.2%. It should also get rid of such actions as: NOVATEK (MCX: NVTK-which may continue to decline another 2%, Gazprom Neft (MCX: SIBN), to be adjusted down to 1.2%, Sberbank (MCX: SBER), the expected decline of -0.3%), and Aeroflot (MCX: AFLT), at -0.4%.
The us stock market is influenced by corporate companies reports and news coming from the Federal reserve. Despite sharp criticism from US President Donald trump, that the fed should not raise interest rates. After further gradual increase will correspond to economic expansion, the strength of the labour market and stable inflation, which may in the end be the highest. Of the 11 major sectors of the market, only four finished the trading session on profit. The financial sector (SPSY) showed the greatest growth, reaching +0.9 per cent. The sector Basic materials (SPLRCM) was the weakest, and fell by -0,8%.
Home Depot shares fell 4.3%, while the PHLX housing index (HGX) lost to 1.87%. Among the bright spots was Netflix (NFLX), which surged 5.3%, after it reported an increase in the number of subscribers. Shares of United Airlines Inc (UAL) increased by 5.95 percent, after solid profit in the third quarter and once again raised the forecast to the end of 2018. It also affected the stocks of other airlines. The results of the M&T Bank (NYSE: MTB) and US Bancorp (NYSE: USB) also exceeded estimates, and positive impact on the financial sector as a whole. The corporate reporting season and the news will significantly increase the volatility of the us stock market. You should be very careful in making investment decisions in the moments of peak values, overall market volatility.
Gaidar Hasanov
“International financial center”