The Russian stock market extends losses at the end of the day
According to the results of the main trading session Friday Mosberg index lost nearly 0.6% to 2366 points, while the corresponding dollar-denominated analogue of the RTS index to the weakening of the ruble sank 1.1 percent to 1,117 points.
A key factor in the sales made by depressed external background: the evening American S&P 500 index lost 0,81% and the European STOXX 600 dropped 0.51%. Global negativity linked with signs of slowing economies from China, the Eurozone and the United States, the steady fed rate hike and the tightening policies of the ECB (albeit still without raising rates).
Industrial production of China in November rose by 5.4%, expected increase of 5.9%. Retail sales in China in November +8,1%, expected +8.8 per cent. The index of business activity in the services sector in the Eurozone in December was 51.4 points, it was expected of 53.5. The index of business activity in manufacturing in the Eurozone in December of 51.4 points, from 51.9 expected. Industrial production in the US in November stagnated, the expected increase of 0.3%.
RF Central Bank today raised base rate by 0.25% to 7.75%. Most likely, this is the last increase in the cycle. In the 3rd quarter of 2019, we can expect the resumption of the trend on decrease in the base rate. By the end of the year expected 7.25 per cent per annum. Thus, after local sales in the bond market had the optimal moment to buy OFZs. In the current environment, we suggest the best production from the middle of the yield curve – OFZ-26223 with the constant coupon. Coupon payments on the paper are not taxed, and the OFZ can be used to ensure that when you receive the “leverage” of the broker.
On the Russian market in leaders of growth were noted “Megaphone” (+1,6%), NOVATEK (+1.5%) and X5 (+1,3%). The outsiders was Sberbank (-2.3%) and “Русснефть2 (down 2.2%).
The banking sector locally was under pressure in the future, but given the coming change long-term trend of monetary policy of the Central Bank of the Russian Federation, now is a good time to open long positions.
Basic grades of oil by the evening lost in the range of 2%: a barrel of Brent cost $60,6; and WTI – $51,6. Raw materials are selling because of expectations of slowdown in global economy and demand for “black gold”.
On the currency market of the Moscow exchange the dollar by evening, added 0.8 percent to 66.7 rubles, while the Euro grew by 0.2% to RUB 75.4 per the Decision of the Central Bank of the Russian Federation on the resumption of foreign currency purchases on the open market fundamentally neutral, as was expected. The pressure of external negativity.
The evening session is expected to stabilize on the pair dollar/ruble, and the futures of Mosuri will remain under pressure from negative external background.