Stock market: U.S. companies disappointed investors
Expect a minor decline at the opening of trading on the Russian market due to the mixed dynamics of trading futures on global stock indices, including a decline of 0.5% futures MSCI EM. So, trading starts the new week with the remnants of negativity from past, when reporting for the III quarter of American companies did not meet the expectations of investors and the same weak result projected in the fourth quarter. SP500 stock index sank 3.8% to 2658 points, while the dollar index grew by 100 b.p. to 96.8 points.
Since market expectations about the reporting is negative, investors take the government bonds, which yield continues to decline, and on Monday morning quoted of 3.07% versus 3.2% at the beginning of last week.
Week expected reports Apple, Facebook, Exxon Mobil and other companies. Monday will be published data on personal income/spending figures, expected to increase rates, which is positive for the stock market. Against this background, as we predicted earlier, the Delta of the movement of capital in ETF funds with focus on Russia showed a small positive result, for example, VanEck Vectors Russia +$28.5 million last week.
It is possible that the decline in the Russian market can enter and other non-residents. However, the topic distribution of the tax burden on the mining industry, can force to postpone the purchase of the shares of this sector. The ruble, expected from the partial consolidation on Monday due to tax payments on profits.