The Russian stock market: the Oil and gas sector is the main driver

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The Russian stock market continues active growth due to the growth of the oil and gas sector companies. On the background of favorable conditions for the oil sector, the price of Brent crude is trading above $80.00 per barrel. The sharp jump in oil prices came after over the weekend, OPEC announced that the group will only increase output if the customer requests it, because Saudi Arabia, Russia and their allies ceased to produce excessive amounts of oil.
Meanwhile, trade disputes United States China remained in the spotlight, as the US tariffs on Chinese goods worth $ 200 billion. USA and response rates in Beijing on the products in the amount of US $ 60 billion. The United States should be released later in the day. However, shares of companies related to the oil and gas sector will continue growing until the end of the week. Gazprom (MCX: GAZP), could grow by another 1.8%, Tatneft JSC (MCX: TATN RM) can grow by 0.5%, Surgutneftegaz-Pref (MCX:SNGS_p) after the correction will add 1%, Bashneft-Pref (MCX:BANE_p) growth potential could be as high as +2.6%, RussNeft (RNFT RM, is expected to increase by another 1.5%. Due to the growth of the sector indexes of the Russian stock market has continued to update historical highs.
American stock indexes closed the week mixed. Investors interested in the Coca-Cola company. Shares of canadian producer of marijuana, Aurora Cannabis (OTC: ACBFF), 17 September was 17% after Bloomberg reported that Coke was in talks with Aurora to explore the possibility of creating a beverage, full of cannabis. Although both companies have not confirmed nor denied the news, their applications have attracted the attention of major investors.
Before you shake the speculative market of marijuana, Coke has created ripples in the tough competitive market for coffee, when last month announced the acquisition of the British global network of Costa coffee for 5.1 billion dollars. It was the biggest acquisition by Coke in eight years. The deal sent shares of parent company Costa Whitbread PLC (LON: WTB). August 31, shares rose 19%, the biggest jump in two decades.
When the stock markets continue their abundance, but investors do not lose the negative impact of the escalation of the trade war, the American reference index last week reached new highs. It seems that little can stop this great run. However, some of the world’s largest companies have warned about the negative consequences of the new US tariffs on Chinese imports.
As reported, Walmart (NYSE: WMT), the world’s largest retailer, warned of the U.S. Trade representative Robert Lighthizer in the letter that the big seller retailer may have to raise prices to combat tariff costs. This letter is the last red flag, following similar concerns expressed by other major multinational corporations, including Apple (NASDAQ: AAPL), Target (NYSE: TGT) and Samsonite International (OTC: SMSEY).
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Gaidar Hasanov
Expert
“International financial center”