The Russian stock market on Thursday started trading rise

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The Russian stock market on Thursday started trading rise. To date, the major stock market indicators do not demonstrate directional movement. In the morning leaders demand marked paper “Mechel” and “Uralkali”. In the “red” zone are shares of “Gazprom” and “NOVATEK”.
The external background to the session was favorable. U.S. markets ended the previous trading in significant positive territory, futures on the S&P index increases slightly in premarket trading.
Oil prices rise this morning, feeling support from statistics and news. A barrel of Brent traded at $79,68 (+0,3%). Yesterday’s statistics from the energy Ministry showed the decline in oil reserves with a simultaneous increase in gasoline stocks. This somewhat contradicts data presented earlier API. Therefore, the capital markets take the news that you want to respond, and while they are bullish, for example, the comments of Iran about the possibility of getting a barrel strap $80.
The Euro/dollar looks quite confident. Morning trading in the main currency pair are about 1,1700. Today there is sufficient interest to investors macroeconomic statistics, so the second half of the day is not excluded sharp fluctuations.
The Russian ruble continued to rise in price in a basket of currencies in the first hour of trading. The US dollar was worth RUB 66,48 (-0,5%). The domestic currency is still time to strengthen. The US dollar will potorguemsya today within 66,30-67,25 rubles., the Euro will remain within the boundaries 77,40-78,50 RUB.
Index Mosuri will remain Thursday within 2390-2410 points.
The Ministry of economic development published a report “the Picture of business activity. September 2018”. Unfortunately, the contents of the report are not encouraging and demonstrates the existence of certain negative phenomena in the economy. So, at the end of August, the pace of Russian economic growth slowed to 1% year-on-year. In July the growth was 1.8% year-on-year. In the first eight months, the country’s GDP grew 1.6%. Thus, by the end of the year the figure may reach projected values of 1.8%. However, it is understood that it degraded the forecast earlier, the Ministry expected growth in the district is 1.9%.
The main reasons for the slowdown in the economy are the decline in the growth rate in agriculture by 10.8% by the end of August and stagnation in the construction sector. The Agency also notes the decline in the industry growth from 3.9% in July to 2.7% in August. The positive is observed only in the mining industry, due to the revision of the parameters of the deal, OPEC+ oil production in Russia rose in August. Output growth of mining industry amounted to 4.5% m/m instead of 3.2% yoy in July.
Based on the content of the report, we can conclude that the Russian economy remains sensitive to external factors, in particular, the negative impact on the growth rate of the economy have sanctions, weak domestic demand and difficulty in borrowing. The following year, the GDP growth rate would probably be lower.
Among corporate news it is necessary to highlight the extraordinary General meeting of shareholders of “Children’s world”.
Alexander Razuvayev,
The Director of analytical Department,