The Russian stock market was supported by favorable external background
Russian stock indexes opened higher in response to positive external background and the attempts of the bullish momentum in the oil market. But the optimism didn’t last long, and the benchmarks went to negative territory, in response to a partial retreat of European colleagues. In fact, investors quickly recovered news about telephone negotiations between the US and China and not to fall into euphoria, having received no details of the discussions. In these circumstances, the Russian market has not found a reason for the continuation of the morning rise, especially that of oil stalled at around $ 63 per barrel.
Brent good strong on Friday, but again losing ground, reflecting the lack of details of the trade dialogue between the United States and China, and the increase in OPEC production in October by almost 1 million barrels. Also a more stable price growth has been impeded by doubts of players that the cartel and its allies at the December meeting will decide on deeper production cuts to maintain market, which threatens to further skewed towards oversupply due to growth in US production and a slowing global economy against the background of trade wars. Overall short-term technical picture now looks more positive, but upside risks are limited.
World investors continue to monitor developments on the trade front, but gradually begin to switch their attention to the minutes of the October fed meeting, which will be published on Wednesday. In light of the recent improvement in U.S. data, it is likely that the regulator will show a slightly more optimistic attitude. In this scenario, the dollar falling today against the other major high yield currencies can recover some of the lost positions recently, including in tandem with the ruble. Moreover, the recovery of the pair dollar/ruble above $ 64 RUB. perhaps in the near future.
_________________ Mikhail Kogan,
Head of Department of analytical researches,
“The higher school of financial management”