The Russian market finished the day without ideas to the external environment
Index Masuri at the end of the day added 0.14% to 2454 points, and RTS due to the weakening of the ruble has lost 0.09 percent to 1,158 points.
The external background to the end of the day, looked like a negative: the main us stock index the S&P 500 lost 0.59 percent, while the European STOXX 600 was down 1.08 per cent. A key factor in pressure – increase in the yields of US government bonds. Ten-year bonds are already yielding 3,233% per annum, which is almost two times higher than the dividend yield on the local stock. In addition to this instability adds a trade war between the two biggest economies in the world – the US and China. The people’s Bank of China in an attempt to support the economy for the third time since the beginning of year has lowered the reserve ratio for banks on deposits. Friday kicks off a season of reports in the United States for 3Q2018: will releases Citigroup, JP Morgan Chase, Wells Fargo.
Turkey from October 17, introduces quotas on imported steel in Brazil’s presidential and parliamentary elections were preceded by corruption scandals and the impeachment of the President – it all adds to the nervousness of the emerging markets. CDS on Russia at the General negativity today has grown significantly.
The index of business activity in the services sector of China from Caixin in September amounted to 53.1 points, it was expected of 51.4 points. Industrial production in Germany in August fell 0.3% m/m, expected +0.4 percent. Index Sentix investor confidence for the Eurozone was 11.4 points, it was expected of 11.7.
Among Russian stocks in the leaders of growth were Sberbank (+2,5%), “OGK-2” (+2.5%) and Tatneft (+2.1 percent). The outsiders were traded Rosneft (-4,7%), MMK (-2.1%) and rosseti (-2%).
Paper of the savings Bank reacted to the growth of the application management in the course of the meeting with the President of the Russian Federation. German Gref announced that the Bank as the largest holder of gobongo suffered losses because of volatility in the OFZ market. However, it is obvious that these losses are largely “paper” and the risks of default on government bonds consistently extremely low. We recommend to increase positions in the preferred shares of Sberbank, taking advantage of attractive price levels.
Oil major varieties by the evening gradually decreased in price: a barrel of Brent cost $83,4 and WTI – us $73.9. Players continue to reflect relatively unexpectedly large growth in U.S. inventories last week. However, the reduction of oil extraction in Iran due to us sanctions limit this negative effect.
In the currency market, the dollar Mosberg night was added 0.2% to 66.7 rubles, while the Euro lost 0.3% to 76,5 RUB the pressure on the ruble has had a global strengthening of the dollar (DXY index).
At the evening session, not expected to be significant movements in the futures of Mosuri and on the foreign exchange market.