The Russian stock market continues steady growth

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The Russian stock market continues to consolidate in accordance with external signals, including the rising in price oil. The main driver of demand for risky assets is the renewal of hope if not at the conclusion of a trade transaction, then at least for the resumption of constructive dialogue between Washington and Beijing. At the end of yesterday’s session, the index Mosberg and RTS has added on average 0.5% and judging by the preservation of optimism of foreign investors, we can expect continued bullish bias at the end of the week.
Today, the Bank of Russia will decide on monetary policy, and the consensus forecast suggests a reduction of the rate by another 0.25%. In the expectations market is based on low inflation, the need for economic support and the global trend towards monetary policy easing. Because such a verdict has already been priced in, the outcome of the regulator is unlikely to cause significant reaction of the players, especially the ruble, which would rather focus on the signals from the dollar.
Sentiment on the U.S. currency in turn will depend on fresh statistics. On the eve of the States published super positive data on PMI ISM services and ADP employment, and if today’s indicators of the labour market, too, will appreciate, the dollar will get another boost to growth and will continue to win back the losses against other major currencies. In the case of pair dollar/ruble in such a scenario is expected to move in the direction of the field 66,60 RUB after yesterday’s attempts to test the level of 66 RUB
Arseniy Dadashev,
Academy of management Finance and investment