Stock market forecast: Rates trump not much frightened investors

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The last trading day of the week the Russian stock indexes finish in the consolidative mode. Market reacts cautiously to the outer film, where the world’s venues a new wave of sales after trump announced import duties on the import of steel and aluminum. The ruble in the first half of the day increases in the range of 0.25% to the dollar and the Euro, thanks to what RTS is trying to hold above its opening levels. Index Mosuri trading with the symbolic lowering of 0.16%.
The impact of the threat of the introduction of protective duties from the United States came in the papers “Rusala”. However, this is more emotional initial reactions from investors, as the company exports to the States, only slightly more than 10% of its production. The situation is similar with Severstal, whose shares are down 0.6%. The company, which last year put in America only 2% of its sales, has said that if Washington does impose protective tariffs, we will easily redirect deliveries of its steel products to other markets. Representatives NLMK, Evraz and RUSAL has not yet commented on the situation.
As for the General mood of the domestic market, nervousness still affected – in the segment of blue chips dominate sales. NLMK and “Magnet” fall within 1.7%, better than market looked shares of “Magnet”, adds almost 2.5%. Paper Raspadskaya’s getting more expensive by 1.4%. Quotations AFK “System” increased by 0.7%, while shares of MTS are trading slightly above the opening level after reports that President AFK Michael Shamolin will lead one of the key assets of the group Segezha Group, and the Committee on appointments, remuneration and corporate governance “System” recommended to the Board of Directors to appoint as President the head of MTS Andrey Dubovskov.
The lack of reaction of the domestic market for Washington’s actions due to the restrictive effect of the potential imposition of high tariffs on the export of Russian companies. However, overall the outer film is unlikely to allow the indexes to recover, especially given the ongoing bearish momentum in the oil market. Brent quotes are unable to go back beyond mark and lose 64 inside the day of the order of 0.5%.
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Igor Kovalyov,
Analyst
InstaForex companies group