The Russian stock market set a new annual high
Yesterday, the index of the Moscow exchange has updated the historical maximum and reached the level of 2700. Drivers of growth were the shares of PJSC “Gazprom” (GAZP) which grew in time by up to 10% on news of record dividends.
In General, the 2019 year will be a record number of dividends in Russia, which can not attract investors including foreign. Most likely, after the completion of the reporting season we will see the correction of papers of the Russian market, and convert ruble profits in the currency will create pressure on the ruble. So it is recommended to very carefully choose the paper for investment and not to strive now to purchase the maximum number of issuers. You may want to pick them up after dividend stories. Well as paper in Russia was expensive by record mild sanctions rhetoric from the United States.
In the same US markets continue to fear the President’s action that pushes the indexes. Today futures are traded in green zone, but things can change at any time. Especially given the upcoming speech of the Head of the fed Jerome Powell, which begins at 16:45 GMT.
If the head of the regulator will deny the possibility of lowering the key rate in the US, the markets will immediately go into the red zone, but the lack of specificity in his words will be perceived as softness and will continue the sale of the U.S. dollar with purchases of the Fund’s assets.
“International financial center”