The Russian stock market ends the week under the sign of the correction

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This week on the Russian market was held mostly under the sign of the correction. Today, investor sentiment has improved, which keeps the domestic indices afloat. Interest for risk returned after the statements of economic White house adviser Larry Kudlow about the possibility of early conclusion of an interim trade deal.
It should be noted that investors ‘ optimism is evident in the cautious mode and it is not surprising, after all, has repeatedly for signs of progress followed by bouts of escalation of the trade conflict. Meanwhile, higher-yielding assets again in demand, but the indexes are not yet able to determine the motion vector. At the beginning of the session, the index Mobimii is reduced within 0.2% and the RTS is located slightly above the opening level.
Some support to the domestic market is the strengthening prices of oil, but for the most part, the dynamics is more like a consolidation, since in the raw materials segment now play two counteracting factors. On the one hand, the quotes help statement on progress in trade negotiations, with the other holding back a negative report of the energy Ministry, which pointed to a rise in crude stockpiles by 2.2 million barrels and raise production to 200 thousand barrels per day, to a new record high. In the short term the oil market is likely to remain uncertain.
In Forex major currency pairs konsolidiruyutsya without any clear trend. This is partly due to the expectation of the publication of important reports – inflation in the Euro zone and retail sales in the United States. The latter will have an impact on short-run dynamics of the dollar pairs and set the tone at the end of the week. If the performance falls short of expectations, EUR/USD will consolidate its position above the 1.10 level.
Gennady Nikolaev
Academy of management Finance and investment