The Russian stock market continues to climb
On Thursday, the Russian stock indices continued to rise, based on signals from the outside, where investors have played a reduction in tensions around trade negotiations, which should resume early next month. Risky assets together continued and intensified the rise, suppressing demand for gold, the Swiss franc and the yen. Additional confidence to investors gave the recovery yield of treasuries. Following the session, the index Mosberg increased by 0.49% to 2807,06, and RTS has grown on 0,54%, having reached level 1337,92.
The rate will be reduced
Today will be a meeting of the Bank of Russia, which will reduce the rate by another quarter of a percent, and this no one doubts. In favor of this decision said the previous rhetoric of the Central Bank, which, in fact, prepared investors for a smooth cycle of easing. Secondly, the world should now move to a more accommodative monetary policy, and Russia has every reason to support this trend. Thirdly, it allows you to make low inflation, which by the end of the year can even pass the barrier of 4%. And, of course, the economy needs support from the lower rates.
While the regulator’s decision is not expected a violent reaction of any stock, a penny, which is traditionally reserved reacts to the outcome of the meeting of the Central Bank. In the short term a greater impact on our currency through the reaction of the dollar will provide key statistics on the American labour market. The results of the report will determine the mood of the dollar pairs at the end of the week. The dollar/ruble yesterday tried to break the mark 66 RUB, but closed above this area, which confirms the unavailability of our currency to a more sustainable recovery. Considering the preservation of a positive external background, stock indices of the Russian Federation at the start of the session will continue to rise.
Director for analysis of financial markets and macroeconomics