The Russian stock market is optimistic
The reduction of interest rates by the Bank of China, the recovery in bond yields, talk of stimulus measures in Germany, as well as speculation on the decline of payroll taxes in the US support the interest risk on Tuesday. However, after yesterday’s rally stocks tempered the ardor, and in Asia, the indexes showed more restrained dynamics. Against this background, Russian indices increased by an average of 0.6%, but can speed up the rise in the development of rebound after the recent sales, if you have a favorable external background.
The ruble is trading near the February lows, although locally the pressure eased a little and the dollar backs off slightly, tending to the mark 66,70 RUB In the Forex market the U.S. currency has stabilized after several days of growth, but the likelihood of resumption of growth is saved and can be realized, if tomorrow’s fed minutes will not be as soft as expected by market participants. Thus, the risk of breakdown of the level 67 RUB this week continues.
Meanwhile in the commodity segment, the quotes of Brent cannot be determined with the motion vector. Morning attempts bullish momentum stopped the region from 59.50 per barrel, and the integrity of the mark 59 is still under threat. Tonight the API will present the traditional weekly report on stocks of oil and oil products, which may slightly revive the dynamics of prices if will reflect a significant change in inventory levels. Also, players will continue to follow trump’s tweets in the context of U.S.-China relations, which remain a significant driver for the oil market.
____________________ Arseniy Dadashev,
Academy of management Finance and investment