The Russian stock market in the first hour of trading was up 1%

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Global financial markets started the trading week with a fighting spirit. After the rise of the Asian indices platforms of the Old world showed decent growth at the opening session. The leader of the Italian MIB, while continuing to win back the formation of a government in the country. Almost 1% gains German DAX 30, which is expensive, despite the strengthening of the Euro. Despite widespread optimism among investors, downside risk remains as the threat of a trade war is growing after the country’s “big seven” criticized trump, threatening retaliatory measures.
Russian stock markets followed the example of foreign colleagues and during the first hour of trading add more than 1%. Moreover, RTS increased almost by 1.5%, reflecting the strengthening of the ruble, which at the opening pushed the dollar under the mark 62 RUB However do not consider the current dynamics as a signal to more serious strengthening of our currency, since the dollar can still return to growth and risk appetite are able to fade into the background of worsening trade rhetoric.
Brent seems to have played a negative from data on the growth of drilling activity in the U.S. and moved on to growth along with the rest of vysokoduhovnym. Quotes again strive towards the level of 77, but the bulls don’t have enough momentum to significantly push the barrel up. If in the near future on the part of OPEC producers is not followed by encouraging comments, we are unlikely to see a resumption of the rally and returning above $ 78. The bearish risks for Brent continue, at least until the price is below the 20-day moving average in the area of 77.70.
Nathan Lambert
Head of research,
Global FX