The Russian stock market has pulled up after a bad week
After the controversial finale of yesterday’s session, on Wednesday Russian stock indexes pulled up from the first minute of trading, reflecting the improving external background. The risk of exit of Britain from the EU without a deal, decreased and threats trump on “tougher” terms of the deal after his re-election was balanced openly dovish comments of fed officials, nezavisimi on the dollar. So, in the beginning of today’s session, the index Mosberg and RTS increased on average by 1% and the ruble opened up a gap.
The fed Bullet called for more aggressive policy easing, citing the decline in the yields of treasuries and the negative impact of the trade war. He was supported and Rosengren, who also expressed concern about the inversion of the yield curve. Against this background, the European currency, on the eve bounced off long-term lows, have allowed themselves to continue the recovery. The momentum of the correction of the dollar after several days of growth looks limited. Maybe the traders hope for more neutral comments following the speakers representatives of the U.S. Central Bank tonight.
In the meantime, the dollar/ruble in the conditions of a pullback USD retreats from yesterday’s highs above the mark of 67 rubles., testing the level 66,50 rubles, including due to the recovery of the prices of Brent oil, which is again headed in the direction of level of $ 59 per barrel. However, the strengthening of the ruble and oil looks fragile, since the renewed interest in risk is not getting the full development because of the continuing uncertainty on the trade front.
___________________ Arseniy Dadashev,
Academy of management Finance and investment