The Russian stock market: Holiday shopping completed

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The Russian stock market corrected after the rapid growth. After Moody’s raised the sovereign rating of the country and gave a forecast for a stable economic and political situation, many investors began to actively invest in the shares of Russian companies. “Sberbank” will rise to +0.2 percent, “RUSAL” – on +0.7%, the “System” can add +0,5%, “RusGidro” – else +0,4%, “Children’s world” – 0,6%.
Oil prices demonstrate the growth attempt. The futures on WTI oil amounted to $53,66 per barrel, up 56 cents or 1.1% above their last closing. US prices were supported by a report by the American petroleum Institute (API). He showed that crude oil inventories fell by 998 thousand barrels for the week – 447,2 million Analysts were expecting an increase of 2.7 million barrels. Futures for Brent oil was up 1%, or 65 cents, to $63,07 per barrel. Production per day in January was 30,81 million barrels, OPEC reduced the rate of 800 thousand barrels.
An increase in oil prices also contributes to the political and economic crisis in Venezuela. This country because of the sanctions the US had problems with oil exports. Washington is waging war against the state energy company PDVSA, although in the past U.S. refineries were among the largest buyers.
So far there is no signs of change in the government. Production losses of supply can increase by 0.33 million barrels per day in 2019. Venezuela is attempting to find other customers, particularly targeting Asia, but due to the pressure of America new buyers prefer not to work with PDVSA. Oil production is falling rapidly, and while the companies that are engaged in the resale of Venezuelan oil, there is no way to mitigate the effect of the sanctions.
Wall street continued rapid growth. Legislators-Democrats and Republicans, signed a preliminary deal on funding of border security, and this weakened concern about another partial government closure. The deal, which still must pass through Congress and be signed before the deadline on Saturday, however, does not provide for the allocation of $5.7 billion for the construction of the wall on the border with Mexico. For this task, provided the total $1.37 billion
Profits continue to commit in companies Under Armour (NYSE: UAA), TripAdvisor (NASDAQ: TRIP), Activision Blizzard (NASDAQ: ATVI). Competitor Activision, Electronic Arts (NASDAQ: EA) jumped 6% thanks to its new game Apex Legends. At the same time, Apple (NASDAQ: AAPL) rose by 0.75% amid news that buys a home router company Eero.
Tesla (NASDAQ: TSLA) was up 1%, Micron (NASDAQ: MU) – 1,22%, Facebook (NASDAQ: FB) is 0.7%. But Gilead Sciences (NASDAQ: GILD) dropped 3.8% after the biotech company reported disappointing test results of one of its drugs. Aurora Cannabis (NYSE: ACB) lost 4% after reporting a decrease in margin in the first quarter and despite revenue increase of four times. Later investors will listen to the speeches of the Chairman of the Federal reserve system Jerome Powell, when he will speak about monetary policy of the Central Bank in the coming months.
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Gaidar Hasanov
Expert
“International financial center”