The Russian stock market has slumped on the sanctions rhetoric

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Trading environment in the Russian stock market naturally started with fall of leading indexes that play the threat of new sanctions from the US and negative comments trump on Twitter. The US President expressed concerns about Moscow’s engagement in the November Congressional elections, what provoked the sale of assets of the Russian Federation the evening before.
So, before noon Mosberg index declining 0.6% and the RTS falling by 1.2%. The ruble was partly corrected after yesterday’s collapse, but may resume the downward trend for the day. Brent crude continues to climb up, but the potential for further rise in the short term looks limited.
Shares of “Sberbank” cheaper by more than 3%, resuming the decline after the recent restoration. A new wave of sales primarily due to the talks about toughening sanctions against Russia, including against the country’s financial sector. Paper VTB falling 1.2%. In the oil and gas sector has not been enthusiastic, despite the gradual recovery of oil prices. “Rosneft” and “Gazprom” cheaper on average by 0.5%, LUKOIL shares increased by 0.3%.
The paper “inter RAO” fall by 1.34 percent after reporting that mostly disappointed. In the first half, the company reduced electricity generation by 1.6% in annual terms. In Russia, production of energy fell by 0.7%, mainly due to prolonged repairs. The heat energy group in the first half increased by 5.3%. Electricity exports for the reporting period fell nearly 8% in annual terms.
The negative impact of external factors on the Russian market only partially kompensiruet rising bias to the oil market, where quotations rise from the end of last week. Additional constraining factor is the tension that global investors are waiting for trade negotiations between trump and the head of the European Commission Juncker, which will take place today.
Igor Kovalyov,
InstaForex companies group