The Russian stock market is not afraid of sanctions

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The Russian stock market continues active growth despite the introduction of restrictive measures against 12 Russian organizations from the United States. Investors are accustomed to such stable negative component. The oil market is really encouraged by stable growth. That firming is valid and the currency of the country. The government of India announced the end to imports of Iranian oil, even when the majority of Indian oil companies had reduced their imports to the U.S. sanctions against Iran.
India has close diplomatic relations with Iran and is also building strategic port of Chabahar in the middle Eastern country. It is expected to be commissioned by 2019. However, at the same time, India has been working closely with the US in advancing its strategic interests and has recently signed an agreement on military relations with the United States.
The price of oil is steadily growing against the background of General uncertainty concerning Iran and the issues of compensation of volumes of oil on the world market after the imposition of sanctions by the US. This situation is positive for Russian oil exporting companies. It is expected the continuation of growth of stock in such companies as: Gazprom (MCX: GAZP RM), can grow on 1%, LUKOIL (MCX: LKOH RM is expected to rise by 0.7%, Rosneft (MCX: ROSN RM), has the potential of growth +4%, Tatneft (MCX: TATN RM), also with a capacity of 2%, Tatneft (MCX: TATN) can add another 1.2%, Gazprom Neft (MCX: SIBN RM, with a growth potential of 1.7%. In General, the Russian stock market is promising for investment. It is expected to continue its upward trend on the main Russian stock indices.
U.S. stock indexes closed mixed. S&P 500 fell on Tuesday, as chipmakers suffered from downgrades, and utilities decreased to an expected increase in interest rates on the Federal reserves, which offset the growth of the energy sector. On the back of strong economic growth and the deep reduction of corporate tax, the S&P 500 today has reached 9 percent in 2018. But five of the sectors included in the S&P 500 index decline from the beginning of the year, including consumer goods (SPLRCS), which is 5.6% below. Amazon (AMZN – Get Report) is likely to continue its work in many areas from retail sales to advertising. Also Square (SQ – Get Report) continues to dominate payments for small businesses and expanding lending, and even salary.
Square shares rose 10.8% on the day, with the potential for further growth. But shares of Nike Inc (N: NKE) fell to 2.89 percent after it published its quarterly results. Paper CenturyLink (N: CTL) fell 8% after the CFO Sunit Patel left the company in an unexpected transition to join T-Mobile US Inc (N: TMUS), for monitoring its integration with Sprint (N: S). While T-Mobile increased by 0.77 % and Sprint gained 0.31 per cent.
The overall picture for the U.S. stock market is quite promising. By investing in companies in different sectors, it creates balance, which also mixed effect on stocks at the end of the trading session.
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Gaidar Hasanov
Expert
“International financial center”