The Russian stock market gave in to the oil negativity
Global investors have digested the extension by the trump of the deadline for the conclusion of trade deal with China and moved to lock in profits after shopping. Deterioration of the external environment immediately affect the dynamics of the Russian market, which felt the additional pressure from yesterday’s collapse in oil prices after the tweet trump. Afternoon index Mosberg and RTS are losing on average 1%, while the ruble is reduced within 0.2%.
Oil prices are trying to recover after a wave of aggressive sales, provoked by the criticism of the American President in relation to the actions of OPEC. Basic emotions in the raw materials segment have already passed, but the players don’t go for a more active buying amid increased threats of the adoption of the cartel of the NOPEC bill. Brent is testing a mark 65 dollars per barrel after a morning dip to an 11-day lows in the area of 64,50. A close above 65 will be a small victory for the bulls and lessen the downside risks in the short term.
The ruble has been doing well, mainly due to the weakening of the dollar in the Forex market and stop of sales in the market of black gold. But since the threat the sanctions front is stored, the potential strengthening of the Russian currency seems limited, even if the General attitude towards risk in the near future will improve. The pair dollar/ruble, which before was close to the mark of 65 rubles, testing area 65,60 RUB, which inhibits the attempts to restore the quotes from the end of last week. Despite the current pressure, the price is unlikely to exceed 66 RUB in the short term.
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