The Russian stock market losing ground

  • And
  • +A

The Russian stock market with the opening of the trading session slightly adjusted, despite the stability of oil prices. Great tension and pressure on the Russian stock market has exacerbate a trade dispute between the US and China. Investors are cautiously trying to choose the most secure assets. Growth in the financial sector rather due to the technical correction after the significant decline of the shares included in it.
Paper of the savings Bank have grown almost on 3%, and the correction may continue at least another 1%. And here about company “RUSAL” there is an obvious interest of large investors in the Issuer. The securities of the company rose almost 5% following news that the company will be registered in the Russian offshore, plus support from the state.
About oil & gas companies, here we see a full-scale correction wave on the background fixing the positions of large market participants, as the price of oil from $80.00 per barrel began to decrease. Today is the first day of the trading week and oil traders, as well as major participants of the oil market, as a rule, in the face of States will determine the development strategy of oil prices. And depending on trends in the oil exporting companies will be varying degrees of interest to investors. Therefore, for such companies as “Gazprom”, “LUKOIL”, “Rosneft”, “Tatneft” we will see both growth and decline depending on the price of oil. In General, a clear negative in the Russian stock market is observed. And even correctional movement indices down does not mean that we can expect the market fall.
U.S. stock indexes on Friday closed in different directions at the expense of sectors. While Bridgewater Associates Inc. and JPMorgan Chase & Co (NYSE: JPM). starting to worry that tighter fiscal and monetary policies will create problems for the world’s largest economy in two years, Goldman Sachs sees a 36% chance of recession within the next three years.
This risk below average historical values. Based on this in the next few years, the growing interest of investors to the chance of a US recession. America still has the power to deter other economies. If America is in recession, the likelihood that other developing countries will suffer the same fate the following year, by nearly 70%. Historical experience shows that recessions in the US went hand in hand with recessions in other places.
But despite the fact that the cycle of the United States has implications for other economies, investors keep optimism concerning the prospects for further growth in the major U.S. stock indexes. The focus of attention were also the shares of the company “Tesla Inc.”. CEO of Tesla Inc (O: TSLA) Elon Musk on Sunday acknowledged that problems with the electric car is now moved to the logistics of delivery due to delays in production, which was the last success factor in achieving profitability.
Currently the company is working to smooth out production shocks after not fulfilled the production targets for its model 3 sedan. Investors took this as a signal to growth of the company’s shares and price of $250.00 actively purchased. Today we can observe attempts of growth in the major U.S. stock indexes, but it does not mean that the indexes can close mixed.
Gaidar Hasanov
“International financial center”