The fed disappointed the US stock market

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Major world stock markets on Wednesday closed in different directions. European predominantly grown, and the us by the end of the day, turned negative, reacting to the increase in fed rates. At the time of its announcement nearly a third of the market (judging by quotations of futures on a bet) had hoped that the increase will not take place. Russian indexes, however, have closed in different directions.
The ruble-denominated index Mosberg up 0.35%, the dollar index of RTS has decreased on 0,58%. Among leaders of growth – Safmar (+3,69%) and X5 (+3,17%). Among leaders of decrease – RussNeft (-3,57%) and “ICB” (-2,34%). The Dow 30 declined for the day of 1.49%.
On the morning of Thursday the indices of the ATR, in response to the increase in fed rates, were down 0.6-3.2 percent. Futures on the S&P 500 index was trading in the morning 2,484 points, 0.8% below the closing levels of the previous trading day.
The continuing decline in world markets and the weakness in oil prices set in the morning negative external background before opening of the Russian stock market, which, apparently, is also waiting for the decline. Likely day the corridor index Mosberg is in the range of values 2335-2385 points, RTS index — 1090-1110 points. Today, the financial results according to IFRS for 9 months and the third quarter will release “the Megaphone”.
The ruble yesterday has played a big decline in oil prices, and in the evening – the increase in fed rates, and ended the day at a moderate disadvantage. At the end of the day on the Moscow exchange, the dollar calculations “tomorrow” rose to 67,4600 RUB (+17,75 COP.), and the European currency has grown to RUB 76,8000 (+37,25 COP.). Morning weakness in oil prices today may continue to put pressure on the ruble. In addition, yesterday’s fed decision to increase rates, in General could put pressure on currencies of emerging markets.
Expected daily trading range for USD 66.8 compared to 68.1 RUB, and for the European currency — 76,0-77,6 RUB.
Thursday morning the price of black gold continued to decline moderately to $56,4 per barrel. Likely daily range for today’s trading, Brent crude oil is $55,8-$57,0 per barrel.
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Vadim Iosub,
Senior analyst,
Alpari