The Russian stock market is in no hurry to surrender to the sellers
Trading on the Russian stock market on Tuesday are held in a positive format. The situation on foreign markets is improving after mixed dynamics in Asia, European indexes are located in the moderate plus, which gives confidence to the Russian benchmarks. In the second half of day the index of RTS Mosberg and increase by 0.78% and 0.59 percent, respectively. In General, fears of a US recession subsided, but persisted, forcing investors to tread carefully.
Ruble tried to continue strengthening in the beginning of the session, but was forced to fall back, despite the fighting spirit of the oil. The role played by several factors. First, the tax period came to an end and no longer support the national currency. Second, the interest risk is manifested not in full force, limiting the attractiveness of the ruble.
Also affected by the geopolitical factor. In particular, the U.S. Congress approved a bill to combat Russian influence in Venezuela. Now for 120 days, the States will report on the possible threat of cooperation between Russia and Venezuela. The pair dollar/ruble, which previously tried again to test the 64 mark to RUB in the point raised in the area of 64.35 RUB, but soon returned to the levels close to the mentioned psychological support, which remains at the centre of attention of players.
As for the oil market, here the quotes are trying to develop the upside momentum, sitting above the level of 67 dollars per barrel. Despite the bullish bias, the potential for strong growth in Brent is currently limited due to lingering concerns over the global economy and uncertainty over trade talks between the US and China.
_____________________ Gennady Nikolaev
Academy of management Finance and investment