The Russian stock market is ready to go to new highs

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On Monday world stock markets were dominated by rampant optimism. Us stock indexes were dressed in green: the Dow 30 rose 0.25 percent, the S&P 500 by 0.37% and the Nasdaq 0.34%. Not far behind, and the Russian stock market: the RTS index on 18 March soared by 1.39%, while the index of the Moscow exchange – 0.26%. The whole world is waiting for the decision of the U.S. Federal reserve interest rate, which will be announced on Wednesday evening. It is expected that the fed again will not be solved by a new rise in interest rates.
The growth of the Russian stock market fueled by rising oil prices, the rapid growth of industrial production in Russia for February, and that Western sanctions against Russia for the November incident in the Kerch Strait turned out to be quite restrained.
Asian indices this morning in the red, probably because of a new diplomatic row between China and the United States. U.S. Secretary of state Mike Pompeo undiplomatic criticized China for alleged “human rights violations”, the Chinese foreign Ministry, in turn, sent to the state Department note that the US does not have the right to interfere in China’s internal Affairs. Apparently, in Asia fear that the diplomatic conflict may again postpone indefinitely the date of the meeting of the American and Chinese leaders. However, we expect that the Russian stock market will continue moderate growth, including waiting for the RTS index for today in the range of 1200-1250 points, while the index Masuri – 2450-2550 points.
Brent oil March 18 rose by 0.48% to $to 67, 23 per barrel and Texas crude fell 0.97% to $59,23 per barrel. On Monday, a meeting of energy Ministers of the countries “OPEC”, the which was agreed to resume discussion on the continued decline in oil production to the end of 2019 in may of this year, as the market is currently fairly balanced. Today we expect the price of Brent in the range of $67-68 per barrel.
The morning of the expected strengthening of the ruble. According to our estimates, today, the ruble may fluctuate in the corridor at 64-65 rubles per dollar and 72,8-73,5 RUB per Euro. ___________________
Natalia Milchakova,
Deputy Director of information-analytical center,