The markets in the hope that the fed will not raise rates
The Russian stock market finished Friday’s trading in green zone on the background of growth of the major indexes in Europe and the United States in the Wake of the publication of weak data on the number of new jobs in the USA that came out on Friday. The markets interpreted that this will be another good reason for the fed to stop raising interest rates, which together with a decrease in the balance of the regulator has a negative impact on the demand for risky assets.
Among the leaders who grew up in the price of securities at the end of trading were the shares of oil and gas (+0,89%), financial (+0,49%) and metals (+0,48%) and sectors.
The MICEX index ended the trading session higher by 0.79% and closed at 2431.29 points. The RTS index jumped 2.10 percent and stood at 1157.94 point on the wave of increase of the ruble to the dollar and the Euro.
The price of crude oil by the end of trading in Russia soared on the news that OPEC will reduce the volume of crude oil production by 1.2 million barrels a day, although earlier it was expected a decline of 1.5 million barrels.
Support to oil quotations also was rendered by easing of dollar in the Forex market. Quotes of Brent oil grade BRENT by the end of trading in Russia soared to 5.36%, to 63,28 per barrel. West Texas WTI has jumped by 4.47%, to 53,79 USD per barrel.
In the currency market the ruble to the end of the regular trading session rose against the Euro and the U.S. dollar amid falling OFZ yields and rising demand for risky assets in the markets. The USD/RUB with calculation time “tomorrow” to the end of the trading session fell by 1.01%, to 66.19 per dollar. The Euro/ruble with the term calculations “tomorrow” has grown by 0.97%, to
75,36 rubles for one Euro.
We expect the optimism in the markets will be temporary in nature.
Most likely, the market will continue after the short-term growth.
The events of the day:
Monday should pay attention to the release of Japan’s GDP and UK exports, imports and trade balance of Germany. From the American statistics of interest will be the value of the number of vacancies in the labour market.
Head of analytical Department,