The RTS index rose to 1150 points, but still looks unstable

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In the Russian share market on Tuesday was a continuation of the rally. Stable market conditions and the absence of vivid information events helped the indices to start after the holidays for trading in a good mood. Index Mosberg back above 2400 points. With all of this in the near future may be cause for abuse to decline, but sellers will need to break through the new support 2375/2380 points.
The RTS index rose to 1150 points, but still looks unstable. The likely corridor of price fluctuations indicator for the near future is 1125-1165 points.
On Wednesday, the Finance Ministry holds auction on placement of OFZ limit of RUB 20 billion, divided into two issues. Let me remind you that the previous two auctions ended ambiguously – the entire planned volume of funds failed to attract neither in one nor in other case. As explained by the Ministry of Finance, it’s all about the market conditions and the external background, which forced investors to exercise caution and not to spend money without regard. A week later, in the external background has not changed radically, it is reasonable to expect that a new auction of the Ministry of Finance will be only partially effective.
The US dollar has been kept carefully, as in the States ahead of the Congressional elections and then the Federal reserve meeting. However, it may be that the demand for safe assets, and the dollar in particular, will increase. 90 days that Washington has given Moscow for reflection due to “business Skripal” expires this week and the US can enter the second stage of sanctions. It implies among other things the deterioration of diplomatic relations between the parties, complication of export and import, complications of flights etc. it is Clear that there is more than flimsy, but time is running out and no news on this point.
The US dollar to close Tuesday in the range 65,95-66,15 RUB, the session environment for the American currency will start around the mark of 66.00 RUB EUR/RUB completes the day in the hallway of 75.25-75,55 RUB.
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Anna Bodrova,
Senior analyst,
Alpari