The Russian stock market at the mercy of geopolitics
Stock indices of the Russian Federation opened with a negative attitude, reflecting a drawdown on foreign exchanges. Soon, however, despite the continuing geopolitical tensions, foreign investors have passed to purchases, returning the domestic market in the growth zone. In the afternoon, both leading benchmarks increased in the range of 0.4%, not daring to storm the highs reached on Monday morning.
The dynamics of global equities, including Russian, now dictates geopolitics. In particular, investors are concerned over lack of progress on tomorrow’s trade negotiations between the US and China because of the scandal around the financial Director of Huawei. And in General, the current improvement in the attitude to risk remains fragile ahead of not only negotiations, but also of the fed meeting that will end Wednesday night. Given the lack of a clear vector of price movements in the oil market, it is difficult to talk about the development prospects of upward momentum on the index of Mosuri and RTS in the coming days.
Brent crude continued to oscillate around $ 60, assessing the impact of the introduction of us sanctions against Venezuela. Further reduction of supply from troubled countries may not have significant impact on the balance of supply and demand in the longer term, as these barrels may replace exports from other countries.
The ruble after the initial drawdown has moved to growth and have almost returned to their original positions, sending the dollar below the 200-hour moving average, which passes just below 66,30 RUB However, the potential for more sustainable growth “wood” is still limited and the oil and the geopolitical background remains unstable, beating the players desire to move to active purchases of the currencies of the developing segment, including the ruble.
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