The Russian stock market declined under the pressure of raw material prices

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The Russian stock market on Monday opened lower. Major benchmarks at the beginning of the session, retreating on average by 0.4% in the European markets this morning featured stock companies “Yunipro” and “FosAgro”. Under pressure were shares of “Rosneft” and “MMK”.
The external environment for today’s trading was moderately negative. The American market finished the Friday session on sales, index futures S&P premarket kept in “red”. Everything else, the Asian platforms also finished in negative territory led by China. The commodities market was in the morning under the influence “bears.” A barrel of North sea Brent oil in the first half of the day is $83,27 (-1,1%). The technical picture of oil trade does not preclude the movement of the barrel in the region of $81.
The Euro/dollar this morning is teetering under pressure from the small sales. Key trades are about at 1.1500 (-0,2%). Friday’s statistics from the USA is already included in the price, rising US yields, pushing the dollar to strengthen.
The Russian ruble began trading Monday with a decline in a basket of currencies. Grinbek in the first minutes of the session cost 66,94 RUB (+0,5%). A dollar today will try to stay within 66,80-67,45 rubles, while the Euro will tend to gain a foothold within the borders of 76.80-77,50 RUB.
Index Mosuri will hold in 2430-2460 points. To decline accelerated, it is necessary that the ruble indicator broke below interim support around 2435-2440 points.
China to increase shale gas production to 100 billion cubic meters by 2030. This was announced by the State energy administration of the PRC. Production growth will occur due to the reduce drilling time by 30%. Beijing plans to develop the technology of mining. By 2020, the country plans to extract 30 billion cubic meters, and after 10 years, to increase production 10 times. The main role in the shale gas production will play the field “Fuling”.
To date, China’s consumption is around 230-240 billion cubic meters of gas per year. By 2030 and probably sooner, the consumption will increase to 300 billion cubic meters of gas. Thus, due to the development of shale deposits, China will be able to provide one third of their annual needs.
By the way, in China ended the week off, and the new was marked by the release of statistics. Published index of business activity in the services sector for September. The figure exceeded expectations and amounted to 53,1 points.
In the corporate sector today is not a lot of events. Meetings of the Board of Directors will hold “Gazprom Neft”, “Transneft” and “coke”.
Alexander Razuvayev,
The Director of analytical Department,