The Russian stock market did not survive the collapse of oil

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The Russian stock market decreased due to external factors, as well as the situation of the oil market. Since the beginning of the fourth quarter of 2018 global oil performance is strongly affected, as confidence in the market fell (because of) weaker economic projections after 2018 and a massive sell-off in global equities. This month the markets suffered from a number of concerns, including the trade war between China and the United States, the gap in emerging market currencies, rising borrowing costs and bond yields, and economic problems in Italy.
Nevertheless, oil markets remain nervous in front of the US sanctions against crude oil exports of Iran which will start on November 4. China is the largest oil customer of Iran. Closing of Iranian oil imports means that many refineries will need to seek alternative supplies in other places. Some relief may come from the United States, where the level of production and storage of oil high. Industrial stocks of oil in the U.S. rose for the fifth consecutive week last week, an increase of 6.3 million barrels.
The uncertainty of the oil market makes investors to switch to companies from other industries. Today, the Board of Directors of “Novolipetsk (MCX: NLMK)” will determine the dividend for Q3 2018, reports according to IFRS will present “inter RAO (MCX: IRAO)”, “Raspadskaya (MCX: RASP)”. The shares of X5 RETAIL began active growth at the background of good reports on the revenue, which for the 9 months grew by 19%. The shares have further growth potential 1700,00 rubles per share.
The us stock market is adjusted as disappointing forecasts from chipmakers and weak data on housing sales caused fluctuations in economic growth and profit growth. Chipmakers Texas Instruments and STMicroelectronics (PA: STM) (N: STM) has warned of slowing demand. They followed disappointing forecasts on Tuesday from Caterpillar (N: CAT) and 3M (N: MMM). On Wednesday, data showed that sales of new homes in the U.S. fell to near two-year low. This is an indication that the rise in mortgage interest rates and higher prices have exacerbated the demand for housing.
Adding to weaker sentiment in late trading, the Federal reserve said in a statement about the economy that the US factories increased prices because of tariffs. Texas Instruments (O: TXN) fell by 8.2%, helping to bring the Philadelphia Semiconductor index (SOX) was 6.6% in its largest daily percentage decline since Oct 2014. Intel (O: INTC), due to the negative earnings report, fell to 4.7%.
CEO of Tesla (NASDAQ: TSLA) Inc Elon musk said on Thursday that the new model 3 electric car will appear in Australia around the middle of next year. On Wednesday, Tesla reported net income, positive cash flow and a wider than expected margin for the last quarter, as higher volumes of production of the new model 3 began to pay off. The company said it will begin taking orders in Europe and China for the model 3 to the end of the year.
If the company starts stable orders, stocks can be traded above $325,00 per share. Stock markets have certain cycles that include a growth phase and declining phase. The us stock market has grown rapidly over the past few years and on growth, met such correction is on average 5-7% in a trading session. And is the normal state of any market. Since the decline typically occurs faster than the growth. And amid the General exit of investors from risky stock markets to provoke such a deep correction.
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Gaidar Hasanov
Expert
“International financial center”