The Russian stock market cannot go higher

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On Friday, the Russian stock market is trading in negative territory earlier showing resistance to unstable external background. World is still dominated by risk aversion in light of the further escalation of the trade conflict between the US and China after Beijing made clear that it is not interested in continuing trade negotiations due to the tough stance of Washington.
Against this background, European stocks settled in the red zone, sending the Russian benchmarks in the negative. Afternoon index Mosberg and RTS are reduced by 0.06% and 0.29%, respectively. Papers “Gazprom” also are corrected after recent gains on news of increasing dividends.
Alleviates pressure on Russian assets positive mood of the players in the oil market. Brent after the morning attempt a bearish correction is growing again, trying to recapture a mark 73 dollars per barrel. However, risk aversion due to the trade war limits the upward potential of prices.
The pair dollar/ruble is trading steadily in the area 64,60 RUB at the opening session of the quotes tried to grow up, but fell again under little pressure. The Russian currency received support from the tax period of higher oil prices and the high demand for debt obligations of the Russian Federation. Despite the pressure, the pair is unlikely to fall below the area of 64.30 to the end of the day.
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Gennady Nikolaev
Expert
Academy of management Finance and investment