Stock market: the Election, the US Congress returned the optimism on global markets

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Most major global stock indices finished the Wednesday growth. In particular, the US markets positively reacted to the outcome of the midterm Congressional elections, the results of which the Republicans managed to increase their advantage in the Senate, but they lost most Democrats in the House of representatives. On the one hand, the loss of majority in both houses, partly to tie the hands of the administration trump, on the other, the preservation of the majority in the upper house makes unrealistic discussing the impeachment charges the President to “relations with Russia.”
For very likely the subsequent anti-Russian sanctions (as associated with chemical weapons, and financial) the election results is generally neutral, and unlikely to change in American politics in this direction. However, against the background of global optimism rose and Russian markets. After Wednesday, the ruble index Mosberg added of 1.37%, the dollar-denominated RTS index due to the growth of the dollar rose slightly less by 1.14%. Among leaders of growth – “VTB” (+5,64%) and “MTS” (+2,63%). %). The Dow 30 increased by 2.13%.
Thursday mornings indexes Asia-Pacific together have grown on 0,1%-1,9%. In turn, the futures contract on the S&P 500 stopped yesterday’s rally and was trading in the morning about 2813 points, 0.1 percent below the levels of the previous day’s close. However, the growing Asian markets can be a growth driver for the Russian securities at the opening of trading. Likely day the corridor index Mosberg is in the range of values 2420-2470 points, RTS index — 1150-1175 points. Today financial statements under IFRS for the third quarter and nine months publishes “ALROSA” and “VTB”, “Sberbank” will report under RAS for January-October.
Unlike stocks, the ruble finished trading environment with a decrease. At the end of the day on Masuria dollar with calculations “tomorrow” rose to 66,3200 rubles (+21 COP.), and the European currency has grown to RUB 75,8750 (+37,5 COP.). The next, already the third attempt of the Treasury to place Federal loan bonds without a substantial premium to the market failed to post was only part of the modest production volumes.
Given the absence of obvious dynamics in the course of morning trading oil we expect a neutral market opening. Expected daily trading range for the U.S. dollar account for 65.7-67,0 RUB, for the European currency — 75,1-76,6 RUB Evening the decision of the U.S. Federal reserve’s interest rate should not bring surprises, it is highly probable growth in the U.S., the regulator will prefer to move in December. But collateral review of the fed’s monetary policy is of great interest to market participants, and the evening session for the world’s currencies can be quite volatile.
Thursday morning black gold held steady in a narrow range of $71,9-$72,1 per barrel. Likely daily range for today’s trading, Brent crude oil is $71,2-$72,7 per barrel.
Vadim Iosub,
Senior analyst,