The Russian stock market after the upgrade, highs began to fall

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The Russian stock market after the update of the historic tops began a correction, which is quite natural. It is worth noting that major investors took part of their profits on a pre-open positions. And despite the fact that the abolition of sanctions by the US Treasury against companies of Oleg Deripaska was essentially ignored by the market, but investor activity, both domestic and non-residents since the beginning of this year has increased dramatically. First and foremost it should be noted that the lack of geopolitical risks in relation to Russia from the West has caused interest of investors to Russian assets.
In this regard, the growth of Russian issuers was raised in almost all sectors of the economy. Shares of the following companies will also be of interest to investors: Magnit, NOVATEK, Mechel, Norilsk Nickel, RussNeft “M. video”, LUKOIL, “Yandex”, “MTS”. On average, companies can grow by 2.4% in the short term. The national currency is in the usual range. The Bank of Russia is acting very cautiously in the Forex market in order not to cause high volatility when buying foreign currency under the budget rules.
On the American stock market was expected corrective wave. In particular, the decline in the sectors of technology, telecommunications and health care led to lower shares. At the close of the NYSE, the Dow Jones Industrial Average fell 0.84%, the S & P 500 index lost 0.78 percent and the NASDAQ Composite dropped 1.11%. But despite this, the best participants of the session on the Dow Jones Industrial Average was DowDuPont Inc (NYSE: DWDP), which rose 0.64% or 0.37 points to 58,13 at closing.
Meanwhile, Johnson & Johnson (NYSE: JNJ) surged by 0.59 percent or 0.76 points to 128,99 and JPMorgan Chase & Co (NYSE: JPM) rose by 0.47% or 0.49 points to 103,88 at the end of the auction. Shares of Caterpillar (NYSE: CAT) fell after reporting earnings in the fourth quarter, which fell short of forecasts. The heavy equipment manufacturer also indicated that the annual profit below consensus estimates. Its stock price fell 9% and lowered the Dow Jones Industrials by about 70 points.
The profit of the company Caterpillar, and its leadership caused the weakness in Boeing (NYSE: BA), Deere (NYSE: DE) and Cummins (NYSE: CMI), forcing the Industrialists to close down more than 1%. Nvidia (NASDAQ: NVDA) cut its forecasts for the fourth quarter of fiscal year 2019, and reported revenues of data centers that do not meet the estimates. She was accused of deteriorating macroeconomic conditions, especially in China, which negatively affects the growth and margin in games and data centers.
The stock price fell by 14%. Duo negative report comes ahead of the busiest week of corporate earnings, which will include the records of the tech heavyweights (NASDAQ: AMZN), Apple (NASDAQ: AAPL) and Facebook (NASDAQ: FB). But despite this General optimism amid falling global stock markets we will see in the near future.
Gaidar Hasanov
“International financial center”