The Russian stock market is steadily growing behind global sites
Russian “blue chips” on the morning of Thursday traded in the green zone. Accordingly, the index Mosberg and dollar-denominated RTS index are in positive territory. Index Mosuri will hold today’s auction in the hallway 2780-2820 points. Brent crude is trading at $of 60.61 per barrel, falling slightly by 0.15%. The ruble is positive. The corridor is expected today on the pair dollar/ruble is 65.9-66,2, Euro/ruble – for 72.8 and 73.1. EUR/USD – 1,104.
Despite the risks of falling demand for oil because of the trade war, the United States and China, the Bank of Russia tomorrow with a high probability will reduce the key rate from 7.25% to 7%. Inflation is slowing and economic and industrial growth remains weak. Perhaps the Chairman of the Central Bank of Russia Elvira Nabiullina will make any hint to the reduction of the key rate to 6.75% in December 2019.
Recall that the target of the Bank of Russia on the key rate is 6-7%. The reduction of the key rate leads to a drop in interest rates on deposits, which increases the interest to the Russian dividend stocks, and also likely to spur demand for the new issue of national OFZ. With the opening of the Deposit the delay is not worth it, rates are likely to decline to the end of the year. From our point of view, the decision of the Central Bank rate is already incorporated in the quotations of Russian shares and ruble.
India signed contracts with Russia for supply of weapons and military equipment by $14.5 billion, said the head of the Federal service for military-technical cooperation Dmitry Shugaev. Now, negotiations are continuing for the delivery and licensed production of portable SAMS “Igla-s”. In addition, the parties signed an agreement to manufacture in India of spare parts for Russian weapons and military equipment.
Last year, despite the “severe pressure” of the US, India has ordered Russian anti-aircraft missile system s-400, project 11356 frigates, and a large consignment of munitions for the air force, naval, and land forces. Russia, as expected, becomes a factory of defense technology for the entire non-Western world, which allows it to have export revenues of $15-18 billion per year, ranking second in the world arms market.
The head of “Information-analytical center,