The Russian stock market is struggling for new historical highs

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The Russian stock market continues to fight for new highs. Papers “Rosneft” and “RUSAL” moving up in anticipation of positive statements. Now, when companies start to report for the fourth quarter, we can observe the increase in volatility. Thus the index Mosuri will impact those companies that reported weak – it can significantly slow the growth of the index, even to correct them.
Shares of “RUSAL” will rise to +0.3% of the “IDGC of Siberia” – +0,7%, “RusGidro” can be increased by +0,4%, “Rosneft” will grow by +0.4 percent. And here are the papers “Aeroflot” has lost in price of 1.3% due to weak RAS results for the fourth quarter. The fall can continue to share NLMK and TMK, on average by -1.4%.
The global oil market is pleased with the growth of quotations. U.S. sanctions will severely restrict oil deal between Venezuela and other countries and Iran be similar to, but slightly less extensive. In the Gulf of Mexico has formed a flotilla, loaded with about 7 million barrels of Venezuelan oil, and the goods were purchased in anticipation of the latest U.S. sanctions.
Meanwhile, oil supplies from OPEC countries+ in January dropped as low as possible over the last two years. Saudi Arabia and its allies have exceeded my quota in accordance with the agreement on reduction of supply, Iran, Libya and Venezuela registered the forced reduction. Russia acted in accordance with the obligation of gradual reduction of oil production. In January, production fell by 47 000 barrels per day compared with October.
Wall street continued its strong growth. US shares rose in after-hours on Monday due to the sectors technology, Industrials and consumer services. At the close of the NYSE, the Dow Jones Industrial Average gained 0.70 percent, reaching new 1-month high. At the same time, the S&P 500 index rose 0.68% and the NASDAQ Composite – on 1,15%. The best participant at the session on the Dow Jones Industrial Average index was Microsoft (NASDAQ: MSFT), which increased by 2.88% or 2.96 points to reach 105,74 at closing. However, Apple (NASDAQ: AAPL) rose by 2.84 percent, or 4.73 points to 171,25 of the item, and Boeing (NYSE: BA) added 2,47% or 9.57 points, to of 397.00 at the end of the auction.
Shares of companies specializing in technology, has grown on the back of strong profits. Microsoft (NASDAQ: MSFT) gained + 2.88% of Apple (NASDAQ: AAPL) rose + of 2.84%. Facebook (NASDAQ: FB) and Google, a subsidiary of Google (NASDAQ: GOOG) (NASDAQ: GOOGL) dominate in digital advertising. Even when the public is becoming more aware of how these two Internet giants are treated (or MIS treated) user data, consumers are unable to stop using the services, and marketers – to find a more suitable place for placing ads.
Investors trying to choose between Facebook and Google can be tricky. Revenue growth is slowing in both companies. For Facebook the reason was the acceleration of the transition from ads in their channels of advertising within the mailings. In Google on a regular basis growth slowed by about 1% yoy and 24% over the past 12 months. This is due to increased saturation of advertising resources of the company. The growth of paid clicks on the platform fell from 62% in the third quarter of 2017 to 10% in the third quarter of 2018. However, both companies have prospects due to the monopoly. Their shares could rise on average by 2.6% in the short term.
Gaidar Hasanov
“International financial center”