The Russian stock market conquers against the background of growing oil

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The Russian stock market conquers against the background of growing oil. The attention of almost all of the bidders are drawn to the situation of the oil market and those companies which have a direct relation. Oil prices in the US reached its highest level since November of 2014 on Tuesday, while Brent also hit a four-year high hit the previous day when the markets are preparing for more stringent supply after the US sanctions against Iran will start next month.
Brent has risen more than 20 percent from their recent lows in August. More fundamentally, the oil markets were podtolknut impending US sanctions against Iran’s oil industry, which at its last peak in this year accounted for nearly 3 percent of the nearly 100 million barrels of daily consumption in the world. Supply situation looks quite fragile, as any additional deficits, such as deterioration of the situation in Venezuela, will tighten the supply of oil.
Against the background of strong growth in oil prices, oil and gas companies in the short term may continue to grow. Rosneft (MCX: ROSN), growth potential is at +0.3%, NOVATEK (MCX: NVTK), may be added +0.2%, Tatneft-Pref (MCX: TATN), is expected to increase another 0.4%, Surgutneftegas (MCX: SNGS), can grow at +1%, Surgutneftegas (MCX: SNGS) has growth potential for another +0.5%. In General, the situation on the Russian stock market favourable. It is also expected the strengthening of the national currency to the price of 64 rubles per dollar.
U.S. stock markets closed mixed, with gains in the sectors of oil and gas, basic materials and industry has led to growth stocks, while losses in the sectors of utilities, consumer services and financials led to a decrease in the share of stock. The assets of the emerging markets ready to rally next year because of protectionism between the U.S. and China is reduced. A breakthrough in trade made on Sunday in the US, Canada and Mexico, helps to optimize the truce between the two largest economies in the world next year, as tariffs affect both countries.
This may mean relief for assets from Argentina to Turkey and Brazil, who were beaten by the escalating feud between Donald trump and XI Jinping. Breakthrough with Canada will have a new pressure on China, which faces a clear weakening of its manufacturing sector. But you should also understand that a trade war may not last long, given the effect on U.S. consumers.
Amazon’s ambitions in streaming video can make a big step forward, as the company is preparing a new advertising-supported TV service, which will begin this week. Shares of the company can re-price from $2000 to resume growth, with the medium-term potential $2100 per share.
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Gaidar Hasanov
Expert
“International financial center”