The Russian stock market is focused on oil

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The Russian stock market traded mixed following the reaction of other global trading platforms on the expected interest rate increase by the fed. The stock market is more focused on the situation unfolding around the oil market. Oil prices rose on prospects of a supply crisis once the US has ruled out the release of emergency stocks of oil that added to concerns about the possible loss of Iranian supplies. Futures in new York rose 1.4%.
Prices on Wednesday fell after U.S. energy Secretary Rick Perry said that the release of oil from the strategic petroleum reserve to prevent decline in prices will have a “minor and short-term impact”. This has helped the market to shrug off events in American oil stocks, which rose for the first time in six weeks.
The balance of the United States is approaching four-year lows after the Organization of countries-exporters of oil has reported that they are in no hurry to increase production to counter losses in Iran and other places, repeatedly criticizing President Donald trump.
After a long growth stocks of oil and gas companies we see the expected correction of the prices associated with partial fixing of positions by market participants. Today we expect continued growth in the shares of “Tatneft”, “Rosneft”, “Gazprom”. These securities have the potential for growth at least by 1%. The overall picture of the stock market can be favourable on the background of continued growth in oil prices.
U.S. stock indexes during the meeting of the US Federal reserve has closed in the red zone, though the rate hike was expected, however, the Federal reserve raised interest rates but played down the prospects of higher growth rates. On this background affected the banking sector. Bond yields declined. Goldman Sachs (NYSE: GS), JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) closed lower, as decreased the 10-year yield of US Treasury bonds. The fed has delivered an upbeat assessment of the economy, predicting growth forecasts for this year to 3.1% in 2018, compared to 2.8% previously.
Losses on the broader market was aggravated by the sharp decline in the energy sector, as oil prices reversed the profits after data from the energy information Administration showed that crude oil inventories unexpectedly fell.
The technology sector has allowed investors to gain a profit in this sector, as shares of GoPro (NASDAQ: GPRO) closed 4.5% higher, despite a double-digit rally intraday support amid bullish comments to wall street. At a stable economic growth and strong labor market, the fed has left their prospects for the next few years largely unchanged. Still expected one more rate hike in December, three more in the next year and one in 2020.
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Gaidar Hasanov
Expert
“International financial center”