The Russian stock market has considerably gained weight

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The beginning of the new trading week on global markets was marked by the strengthening of the interest risk and the further decline of the dollar across the spectrum of the market. Investors are left worrying about a trade war and its consequences in the background, encouraged by Friday’s data on U.S. labor market that pointed to the absence of the need to accelerate the pace of tightening in monetary policy in force on sluggish wage growth. If announced this week, inflation in the United States, too, will disappoint, the dollar risks to continue the retreat.
After the Asian markets at the start of the session increased the European indexes. The Russian market followed the example of foreign colleagues and grows well in the first hour of trading Monday. Index Mosberg and RTS increased on average by 0.8%, including thanks to a bullish bias in the commodity segment, where quotations Brent held above the 77 level. However, the mark of 78 still appears to be unavailable for the bulls, who experience a lack of positive drivers. In such circumstances, prices need to keep at least a minimum upward slope and to refrain from correction under the mark 77.
The ruble continues recovery, taking advantage of the vulnerability of the dollar, which in the morning had touched the July lows in the area of 62,78 RUB However the potential for further strengthening of our currency seems limited, as players are more cautious in anticipation of the meeting of leaders of Russia and the United States, which will take place next Monday. So, in the coming days, “wood” will try to stay afloat thanks to optimistic expectations, however, in the event of renewed demand for the dollar and the inability of oil to develop the upside momentum will give way to the “American” mark of 63 rubles.
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Nathan Lambert
Head of research,
Global FX