The Russian stock market remains without ideas against an external negative

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The Russian stock market continues to trade sideways. On the background of strengthening of the dollar and the conflict with China has on the market more negative pressure. Driver of optimism is the situation in the oil market. Oil prices began to strengthen as drilling in the U.S. for new production stalled, and since the market is looking at more stringent conditions, once Washington’s sanctions against crude oil exports of Iran will begin in November. Energy company USA has cut two oil rigs last week, bringing the total number of accounts reached 860.
Against this background, the growing interest of major market participants for the oil and gas companies is intensifying. Rosneft before the end of this week could reach $ 450.00 rubles per share. Tatneft will trade higher 815,00 rubles. Paper Gazprom may go beyond the price range of 151.00 above rubles per share in the short term. On the background of the weakness of the ruble, the company importers will be of most interest to investors because their revenue is received in foreign currency.
U.S. stock indexes closed slightly lower, associated with large-scale profit taking before the weekend, and because of concerns about tensions between the US and China. Shares of Apple Inc began to decline after the President of the United States Donald trump tweeted that the tech giant needs to produce products in the United States, if he wants to avoid tariffs on Chinese imports.
Review trump went after Apple reported US officials on trade, Washington fares in the face of growing trade war with China will affect prices for “wide range” of items Apple, including the Apple Watch. Against this background, shares of Chinese Apple supplier Luxshare Precision Co Ltd (SZ: 002475), Shenzhen Sunway Communication Co Ltd (SZ: 300136) and Suzhou Dongshan Precision Manufacturing Co Ltd (SZ: 002384) fell by as much as 10%.
The technology sector is one of the biggest potential losers in the tariff list at $ 200 billion proposed by Washington on Chinese imports, because tariffs make imported various computer modules more expensive. Today, the major market participants are experiencing some panic. In anticipation, the focus will be on how the market reacts after Apple will release their latest models
Gaidar Hasanov
“International financial center”