The Russian stock market kept in bursts of growth

  • And
  • +A

At the start of the new trading week the Russian stock indexes has continued to develop the recent bounce, which from a technical point of view seemed to be justified after a prolonged bearish correction. The momentum of the recovery is very restrained due to the limited optimism on foreign markets, caution players on the Russian sites due to the recent mentioning of the topic of new sanctions from the United States, as well as the negative dynamics of the indices of the developing segment.
So, at the end of the session, the index Mosberg increased by 0.46% to 2728,27 and the RTS was up 0.39% finishing at around 1353,61.
The current mood of investors in our market can be described as neutral. On the one hand, there are preconditions for a pullback after a deep downward correction within the bullish trend. In General, the situation on foreign markets is looking good, although after repeated overcoming of new highs of the indexes wall street and against the backdrop of sharply increased threat of withdrawal of Britain from the EU without a deal, the potential growth of the markets looks limited.

Caution is holding back equity markets

Another factor which suggests caution on the part of investors, including on the Russian market, is the fed meeting, which starts today and ends on Wednesday evening.
Accordingly, our assets will respond to its results on Thursday. The decision of the American regulator set the tone for global markets not just in the coming days, but in the medium term. In General, the policy suggests a renewed interest in risky assets, but if the Bank’s rhetoric will not be as soft as the investors demand vysokoporodnyh will be under pressure.
In the short term, given the positive sentiment on Asian markets and the strengthening of quotations of Brent, which develop yesterday’s recovery and return to around $ 64 per barrel, it can be assumed that the domestic indices opened with a bullish bias. In the case of index Mosberg need confirmation of the return above the level of 2700.
_________________
Alexander Timofeev,
Head of analytical Department,
IR “Instant”invest