Russian stocks are responding positively to the talks China and the United States

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The Russian stock market opened on a positive note, as news about a possible settlement of trade disputes the United States and China, as well as the soft rhetoric of the fed, served as a stimulus for investors. Major market participants are trying to return to hand-drawn assets on the background of total positive. Oil continues to rise, as early reports from Beijing on trade talks are fuelling optimism over the successful trade negotiations between the US and China.
Jump in oil prices corresponded to the Asian stock markets today rose to one-week highs. Crude oil exports from the US to Asia will continue to grow in the second quarter, as retailers cut prices after a sharp drop in freight rates and the expected decline in demand in the United States.
United States increased sales of crude oil to Asia, aided by a significant discount of us crude to the international Brent benchmark. There is a probability that in the second quarter oil exports to the US will be higher year on year, if the spread WTI / Brent will remain in the range that he had in recent months, and lower rates of freight. In this context the expected increase in oil prices since the armistice in trade wars between the US and China will serve as a signal for the recovery of the economies of almost all countries.
Investors are eagerly buying up shares of such companies as “Gazprom”, “LUKOIL”, “Tatneft”, “Gazprom Neft”, “Bashneft”. The shares of these companies in the short term could rise on average by 2.5%. Also in the Russian sector of highly liquid securities will continue to rise in the shares of VTB (MCX: VTBR) may continue the increase of +1.2%), MTS (MCX: MTSS), the expected increase of +1.5%, Rostelecom (MCX: RTKM) will grow by +1.2%, Norilsk Nickel (MCX: GMKN) expected growth of +1.4%.
Wall street continues active growth on the background of a possible settlement of the trade conflict between the US and China. Trade delegation of the USA in Beijing “completes” meetings with Chinese officials and will return to the United States late on Wednesday after “several good days. Asian stock markets jumped after the talks were extended for an unscheduled third day, instilling optimism that the world’s biggest economy unable to conclude the bargain, to avoid a total confrontation that would seriously undermine the global economy.
The President of the United States Donald trump and Chinese President XI Jinping agreed in December on a 90-day truce in a trade war that shook the world’s financial markets. Originally scheduled for Monday and Tuesday, the negotiations were extended by one day amid signs of progress on issues such as procurement of farm and energy products in the U.S. and increased access to markets in China. However, people familiar with the talks told Reuters on Tuesday that the two sides parted ways in the matter of structural reforms in China, which requires the administration of a trump, to stop in advance of the theft and the forced transfer of us technology, and how Beijing will meet its promises.
Gaidar Hasanov
“International financial center”