The Russian stock market continues to climb at the start of the session
The Russian stock market continues to climb at the start of the session Thursday with an eye on the rally rice assets on the news of the resumption of the trade negotiations, the U.S. and China in early October. Index Mosberg and RTS opened higher by 0.6% and 0.7% respectively. The ruble also strengthened, sending the dollar to around 66 rubles, which so far has resisted the sellers of the American currency.
The growth of the Russian currency due to the widespread retreat of the dollar combined with the rise of interest in risk and the strengthening of oil prices. The main driver of sentiment in the segment of high-yield assets are hopes for progress in relations between Washington and Beijing. However, this euphoria runs the risk of quickly come to naught, because before the negotiations, the situation could still deteriorate, as has happened, especially given the unpredictability and changeability of moods trump.
On makroekonomicheskoi the front players switch to tomorrow’s report on US labor market, which will affect players ‘ expectations concerning a rate cut by the fed. Recent dovish comments from the fed pressured the dollar, raising concerns of reducing the cost of lending, from 0.5%. So strong data on employment and wages is able to restore demand for the American currency, which will undermine the position of the ruble at the end of the week. In this scenario, the dollar/ruble may return outside 66,50 RUB and again to aspire towards the level 67 RUB
___________________ Arseniy Dadashev,
Academy of management Finance and investment