The Russian stock market: Investors returned to risk

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The Russian stock market after a series of successful trading session today could be slightly adjusted. Primarily, this is due to the fact that large investors will capture profitable positions in individual shares included in the main Russian stock indices. Positive impact on markets and trade negotiations round between the US and China. This suggests that investors will invest in risky assets as the successful resolution of trade disputes, will provide investors with profits. The oil market also has a positive impact on the overall economic picture. The US is trying again to deny the pressure on oil prices.
Oil prices declined and played part of its growth once jumped more than 5% amid optimism on the Sino-American trade negotiations. Optimism about the trade negotiations between the United States and China enhances the mood for risk.
The sharp rise in oil prices also shows that fears about global growth have decreased significantly. Expected continued growth in the stock: MMK (MCX: MAGN) may add +1,2%, Sberbank (MCX: SBER) is expected to increase to +1.1%, ALROSA has the potential of growth +1,9%, “the Pole” will add another +1.4% and NLMK (MCX: NLMK) has a chance of further growth of +1.2%. In relation to the company “RUSAL” should be cautious. The U.S. Congress has decided to postpone the lifting of sanctions against the company and in fact its fate is not yet determined. In General, the Russian stock market will remain positive in the short term.
Wall street continued to trade in the green zone. The December meeting minutes of the Federal reserve system confirmed investors ‘ expectations that the Central Bank is likely to keep raising rates. Minutes showed some skepticism of the fed was due to volatility in the financial markets and increased concerns about global growth. In addition to the fed, the market was supported by increasing energy reserves, as oil prices soared after Saudi Arabia confirmed that it will continue to cut production, while optimism about U.S. Commerce and China also lifted sentiment.
Deputy Minister of agriculture for trade and foreign Affairs Ted McKinney said that, in his opinion, the recent round of trade negotiations “went well”. The US has reduced tariffs on Chinese goods at $ 250 billion, which is approximately half the cost of U.S. imports from the country, and many hope that the recent talks might lead to agreement or at least to prevent the risk of further escalation. 90-day truce in the trade must end on 1 March this year, when President Donald trump threatened to impose another round of tariffs and increase tariffs on imports from China from 10% to 25%.
The shares of Caterpillar (NYSE: CAT) and Boeing (NYSE: BA), commonly known as the traders, given their substantial international exposure, ended the week with a growth by supporting the Industrialists and the wider market. The technology sector also were positive, when Apple (NASDAQ: AAPL) has rejected reports of production cuts of the iPhone. The General background of the American stock market positive. Investors form portfolios for the current year.
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Gaidar Hasanov
Expert
“International financial center”