The Russian stock market began trading week growth
The Russian stock market began trading week growth – the index of the Moscow exchange opened with a gap up 0.6%, while the RTS index grew by 1%. The leaders of growth shares of the metallurgical and oil and gas sector – MMK, NLMK, Severstal, Tatneft and LUKOIL.
Draw attention to oil prices. Brent topped $75 a barrel, now acts as a resistance level the $75.5. If it is breached, from a technical point of view opens the way to $78-80. Further dynamics of oil will largely depend on the decision of Donald trump on the nuclear deal with Iran. It must be made before 12 may not exclude the scenario of sanctions against Tehran. In this case, we are waiting for a new round of escalation in the middle East and rising oil prices.
Otherwise, the external background for the Russian market moderately positive Asian indices traded in positive territory, futures on the S&P in premarket trading adds 0,2%
On world currency markets, the focus continues to be the strengthening of the dollar. Today, the Euro/dollar declines by 0.26% and is at level 1,1924. Market participants believe that the fed will raise rates at the next meeting in June and pretty sure 3 increase in rates this year. Expected trading range for EUR/USD today – 1,19-1,196.
The U.S. currency strengthened against the ruble, despite the growth of oil. Per dollar now give 62,8 RUB, EUR – RUB 74,88 Probable corridor of movement in the pair dollar/ruble today is 62.5-63 RUB.
Today Vladimir Putin will take office as head of state. It is a ceremony of inauguration will be his fourth in his political career. It hardly will affect quotations of Russian shares or the exchange rate. For markets more important the personal composition of the future Cabinet. This is probably the topic of tomorrow. However, the markets always focus on the rumors, trying to forestall.
Russia under the leadership of the current President with honor overcome the difficulties sanctions and the collapse in oil prices. Its economy fell by less than 3% and has already returned to growth. The Kremlin declined to introduce the methods of administrative regulation of economy. The devaluation was a bitter but effective medicine. Devalued costs, it has preserved the margin – i.e., revenues and dividends of the shareholders of the companies. The main task of the new term of Vladimir Putin will be the modernization of the economy and likely partial privatization of assets, which in terms of sanctions remains a challenge.
The MICEX index protorguetsya Monday in the range 2290-2310 points.
The Director of analytical Department,