The Russian stock market failed to show growth
Moods on world platforms has not allowed the Russian stock indices to move into a growth mode. A new wave of flight from risks in overseas markets sent the benchmarks to fresh lows, although by the end of the session, the losses have been substantially reduced. In addition to recessionary signals from bond markets, investors have alarmed China, which has said it will have to impose countermeasures in response to the announced trump rates.
Despite the recent reprieve, Beijing generally believes the new restrictions are unfair. Such rhetoric is back on the scene fears of a further escalation of the trade conflict, which accordingly reflected in the dynamics of stock markets. Against this background, Mosberg index fell by 0.43% to 2625,58 and the RTS fell by 0.76%, finishing at around 1250,13.
The negative on the grounds smoothed over the unexpectedly strong data on U.S. retail sales, which accelerated growth in the past month, showing that consumer spending in the country is all right. However, on the macroeconomic front, the picture was blurred because of the decline in industrial production.
The dollar mostly strengthened in the Forex market, sending the ruble to lows of mid-February in the area of 66,50 RUB, although by the end of the session, the pair retreated to the area level 66 RUB Beginning of the tax period is not helping the Russian currency, the attractiveness which decreases with increasing geopolitical and economic risks. It is not excluded that in case of improving the treatment of risk in the course of today’s session the ruble will try to partially compensate for the loss on decline in short positions before the onset of the weekend.
The oil market is still dominated by bearish mood. Attempts of growth are replaced by sales, which tells about the uncertainty of players in the price growth potential that, in fact, it is not surprising, given the set of risk factors, ranging from trade wars and ending the growing threat of recession. In the short term, Brent will respond to the monthly report of OPEC, which could send Brent to the area of 57.20 per barrel and below, if estimates of the future balance of supply and demand will disappoint. In this case, neither of the ruble and the RTS will not be likely to partial rehabilitation until the completion of the trading week.
Director for analysis of financial markets and macroeconomics