The Russian stock market collapsed because of Gazprom’s shares

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In Thursday trading on the Russian market took place in a rather volatile format. Almost at the opening of the major indices have fallen to minimum for two months levels after papers “Gazprom”, who openly reacted negatively to reports that its subsidiaries – Gazprom Gerosgaz Holdings of Dutch and Cypriot Rosingaz sell almost 3% of the shares of the company. However, the drawdown was quickly replaced by a rally of over 6%, which eased the pressure on our index. Following the session, the index recovered Mosberg on 0,68% – to 2701,02, and RTS has grown on 0,54%, reaching 1346,91.
On foreign exchanges initially morale was spoiled in the second half of the day. Investors were slightly disappointed not enough dovish rhetoric of Draghi is that the ECB has refrained from rate cuts, although some investors hoped that the regulator will not wait for September, especially after the release of the next portion of the depressing statistics. Of the last openly negative releases data are from the manufacturing sector in Germany this week – the index fell to 7-year low, confirming the existence of a crisis in the industry.

The rate of oil immobilized

Quotes of Brent oil by tapping in the moment the level of $ 64 per barrel, fell back and returned to their original positions by the end of the day on the background of General decline of interest in risky assets. A point of attraction from which prices are trying to make overtures up at this stage stands the mark of $ 63.
It is noteworthy, that despite the rather aggressive intraday fluctuations, on the weekly chart, prices are moving sideways. So today will be decisive for the determination of the weekly results. If the interest at risk in the near future will not return, Brent is unlikely to develop upside momentum and is likely to remain near that mark.
In these circumstances, the start of the session should not rely on the continued rebound in Russian stocks from the lows. With high probability bearish correction will resume and mitigate potential pressure can the decision of the Bank of Russia, which is widely expected to cut rates by 0.25% in today’s meeting. However, since such a scenario is already priced in, significant reaction, such a verdict will not result. The factor of Friday can play against our indexes.
Alexander Timofeev,
Head of analytical Department,
IR “Instant”invest