The Russian stock market opened down after the US elections

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After a sluggish dynamics on Asian trading, European stocks started the day with a positive. Neutral investors react to the outcome of the midterm elections in the US, where the Senate remained under Republican control and the Democrats won in the house of representatives, and resulted in the so-called “suspended” Congress. This outcome was expected and did not cause a violent reaction of the markets, although the us dollar weakened.
The Russian market, meanwhile, opened lower. RTS loses more than 0.5%, while the index of Masuri reduced by a quarter percent. Domestic courts play the results of voting in the United States that involve increased sanctions pressure on Russia. In addition, the period in which Moscow had to provide assurances of non-use of chemical weapons and, therefore, the country faces new sanctions. The ruble is trading with a downward bias, even in tandem with the dollar which is under pressure in the Forex market. The us dollar is testing the mark 66 rubles, which will be passed, if the players are until the end of the day will not change.
In the oil market are observed the futile attempts of growth. Brent is trading under the level of 72 after yesterday’s fall to lows of mid-August in the area 71,15. In addition to indulgences, which received eight countries as part of anti-Iran sanctions on commodity segment pushing the updated forecasts by the US Department of energy under which the Agency significantly increased its estimate of future production in the States and at the same time lowered the forecast of oil prices in 2018 and 2019. Thus, if today’s official report from the Ministry will point at further growth of stocks of crude oil, Brent risks to test the level of 71.
Nathan Lambert
Head of research,
Global FX