The Russian stock market ended with a fall

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After attempts of growth at the start of the session the Russian indexes have moved to consolidate, but ended already in negative territory, despite a significant improvement in the external background, where the results of the American session, the indices showed the powerful rally over the past five months. European sites is good, too, gained weight after meeting with business leaders trump promised Mae a good bargain. At the end of trading the index Mosberg and RTS slipped by 0.87% and 0,58% – to 2706,29 and 1307,55 respectively.
Judging by yesterday’s dynamics of the domestic market, the players have exhausted domestic optimism and partially played the recent negativity, and drawdown was moderate due to extinction of escape from risks. Moreover, profit-taking took place despite remedial attempts on the oil market, where the closure of our site Brent traded higher and later went flat.

The fed is preparing the markets for monetary policy

After the beginning of the week the fed John. Bullard openly hinted at the imminent policy easing, the head of the US Central Bank Powell confirmed the dovish mood of the regulator, making it clear that the Bank is ready to respond to risks emanating from the trade wars. It pleased investors who rushed to buy higher-yielding assets.
The improvement in sentiment also contributed to statements by the Mexican President, who expects the conclusion of an agreement with Washington on migration until the introduction of the trump rates. Optimism to investors have added China, which has expressed willingness to dialogue with US to resolve contradictions.
Considering all the factors listed above, we can assume that today the Russian market is able to return to growth, however, because he had previously demonstrated resistance to the negative external background, the improvements may be limited to consolidation with reasonable attempts at recovery, especially that on short-term charts showing signs of overbought after repeated updates historical highs index Mosberg.
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Alexander Timofeev,
Head of analytical Department,
IR “Instant”invest