The Russian stock market has a chance to resume growth

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The Russian stock market has a chance of resuming growth on the background of positive dynamics in the oil industry and also due to the growth of shares of leading Russian companies. American sanctions against the oil sector in Iran, the third largest producer in the Organization of countries-exporters of oil (OPEC) will begin November 4th. The United States under President Donald trump trying to cut exports of Iranian oil to zero, to force the country to review the agreement on its nuclear program.
The Secretary of the Treasury USA Steven Mnuchin said on Sunday, Reuter that countries will be more difficult to abandon sanctions, than it was during the early Obama administration, when several countries, particularly in Asia, have received them. In June, OPEC agreed to increase the offer to compensate for the expected gap with the Iranian exports.
The count of drilling rigs in the USA is an early indicator of future graduation. With the increase in activity after months of stagnation is also expected to increase oil production in the United States. On the background of positive dynamics of oil and gas sector of shares of the company “Gazprom Neft” from the opening show steady growth. Growth potential can reach 400,00 rubles per share. Investors actively monitor the oil and gas industry, as you have to focus on the actions of the more promising companies with the expectation of long-term profits.
The us stock market is in a phase of increased volatility due to the height of corporate reports of U.S. companies. Reaching a record level of 211,70 dollar in June, shares of Alibaba (NYSE: BABA) have lost almost a third of its value, as he feared the escalating trade war between China and the United States. And yet, at the moment a sale seems excessive. Here are the reasons why the stock price of Chinese Internet Titan can rebound to new record highs: by 2022 the e-Commerce market of China will grow to 1.8 trillion US dollars, compared with $ 1.1 trillion this year. Only 38% of the 1.4 billion
People in China are buying online, this huge market will grow for many years. Alibaba is positioned to benefit from this growth, perhaps more than any other business. According to Statista, the company dominates ecommerce in China with a share of over 50%. Alibaba has built a huge presence in the segments of business-consumer (B2C) and consumer-consumer (C2C) for its popular shopping platforms Tmall and Taobao. Alibaba is also making aggressive moves to capture a larger share of the retail industry in China.
In “New retail” initiative includes supermarkets “Hema” Intime Department stores and numerous partnerships with other retailers of brick and mortar. This area of business is thriving Alibaba; New retail sales contributed to the sales increase of 344% compared to the same period last year to more than $ 1 billion in the first quarter of 2019. November 2, the company will report before the market opens. Investors expect positive corporate reporting, after which the company’s shares could increase in value to $160,00 per share. In General, the us stock market is under pressure of the season report and closure of the indices can be mixed.
Gaidar Hasanov
“International financial center”