The ruble did not feel the threat of the ban of Nord stream in Europe
The ruble even against the backdrop of a major geopolitical news of the shake-up, which can be called vote of the European Parliament for Nord Stream-2, remains remarkably stable, continuing to consolidate within the range of 66-67 rubles per dollar as of 12:00 GMT fixing on the mark 66,25 (growth from the opening of Mosuri a quarter of a percent). In tandem with the Euro, before the ECB meeting to determine the key interest rates, the ruble is trading at 7541, also showing an increase from the start of trading, but slightly more modest 0.15%. So what’s the matter, why the market shows that disrespect for the “landmark” decision of the European Parliament?
It appeared that the market to it has not reacted not by a strange oversight. The document says that the Russian pipeline is “a threat to the security of the EU” but not a word about how and will offset the loss of European energy companies in this regard. As you know, five European energy companies — Engie, OMV, Shell and Wintershall Uniper — time to provide funding for the Nord Stream project 2 about 5 billion euros.
In addition, the status of martial law in Ukraine, which introduced Petro Poroshenko after incident with vessels in the Kerch Strait indicates a high probability of suspending the flow of energy through the Ukrainian GTS to its cancellation. The market realised that the European Parliament through its highly politicised participants, do not have any interests in this project, in fact, voted for a partial termination of gas supplies to Europe, and it’s clear that this vote will remain as a paper Protocol and nothing more.
Prime Minister Theresa may, armed with the new slogan “back me or sack me!” last night received a two-thirds majority of the Parliament a mandate to extend his term in office in the project of exit of Britain from the EU. The British pound on the news instantly played percent drop against the dollar the previous day, and now trading at $ 1,267, although its further strengthening against the green looks questionable.
In the market of precious metals – a real Renaissance. In addition to the interesting situation in gold, which we wrote in yesterday’s review (today, it continues to hold above $1250/oz) in our field of vision has been another extremely important, not only as a protective Harbor, but as a necessary component in car production and global military-industrial complex, component.
Many now say that escalation of the confrontation between the US and Russia with China promises a resumption of the arms race in one form or another. But it is a priori impossible without a number of rare metals, mined on Earth only in two places – Russia and South Africa, and MMC Norilsk Nickel supplies about 40% of the world production of such a metal as palladium. Quotes of palladium in 2016 increased by 134% to $1196 per ounce, almost caught up with gold prices, and the current geopolitical situation in the world have a chance next year to beat them.
Meanwhile, in the framework of difficult negotiations, si Tszinpin with Donald trump China promised to resume the purchase of soybeans in the US, that has brought some relief to American farmers and slightly increased prices of the relevant futures in Chicago. American-Asian importer of goods purchased from 1.5 to 2 million tons of the crops, and it is expected that actual delivery will resume somewhere in the first quarter of next year.
“International Financial Center”