The Russian stock market continues rally

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On Wednesday, the rally in the stock market of Russia has been developed. Index Mosberg crossed the level of 12500 and closed at new historical highs, adding more than 0.5%. RTS, thanks to the strengthening of the ruble rose by 0.65% and is preparing to exit the traded channel. The ruble again sent the dollar under the mark 66 RUB to the level 65,80 RUB.
The interest risk maintained before the announcement of the outcome of the fed meeting and increased after the Central Bank reaffirmed the easing of its position. From the text of the accompanying statement has disappeared, the phrase “gradual increase in rates,” which played into the hands of risky assets as a hint of premature tapering of its program of reducing its balance sheet if necessary. In the end, the indexes on wall street rose, passing the baton to the Asian colleagues, which creates conditions for the opening of our benchmarks to new highs with a bullish gap. During the day to keep the positive dynamics will depend on news from the trade negotiations.
The ruble also may benefit from risk rally and dollar’s decline. This combination, as well as rising prices of oil, able to make a couple of dollar/ruble to test the support area of 65.50 RUB, which has repeatedly hampered the growth of our currency in the fall of 2018. A very successful auction of Ministry of Finance, yesterday, also speak in favor of “wood”.
Gennady Nikolaev
Academy of management Finance and investment