The Russian stock market remained without support
On Thursday the Russian market systematically adjusted for obscure external background. However, as the deterioration of moods of global investors domestic indices was forced to accelerate the correction from recent highs. Following the session, the index Mosberg and RTS has lost more than 1%. Prerequisites for rollback itself appeared earlier, but the investors needed more of a push to lock in profits on interesting levels.
Of reason in the West is rife. The Eurozone economy continues to slow, and especially alarm signals from Germany, not to mention a technical recession in Italy. The European Commission lowered its forecast for GDP growth in the region in 2019. By the way, the Commission also revised to decrease its forecast for oil prices by as much as 20% of their autumn assessments. Following yesterday’s meeting the Bank of England is also tempered its expectations for economic growth in the country mainly because of the uncertainty around Brekzita.
Meanwhile, in time before the deadline of March 1 is less. No later than this day, China and the U.S. should conclude the bargain, having settled all differences. Yesterday evening reports were received from the representative of the U.S. administration that the meeting of the presidents of the two countries “very unlikely” to 1 March. This situation increased the doubts that Washington and Beijing will have to negotiate within the established deadlines. Now investors will be even more stress to wait until next week, when be held a new round of talks between representatives of the two powers.
With such a bunch of negative factors and uncertainties it is difficult to count on the return of Russian assets at the same pace of growth, especially since the indexes are still at high elevations. Players rather prefer to wait for deeper correction before coming back shopping when a suitable occasion.
Academy of management Finance and investment