The Russian stock market was trading in deep red
The Russian stock market on Monday morning, trading in the “red” zone. Dollar-denominated RTS index and the index of Masuri decline by about 1%. The worst market, of course, the shares of “Aeroflot”. On the background of yesterday’s tragedy with the flight Moscow-Murmansk shares of the national carrier reduced by more than 2%. However, in principle, a speculative response. Emotions will soon come to naught, and quotes their return. The ban on SSJ-100 in Russia is not expected. In addition, there was talk that Russia needs a single carrier, and it is clear that they can only be Aeroflot.
Index Mosuri will hold today’s auction in the hallway 2540-2570 points. Brent crude is trading at $69,6 per barrel, decreasing by 1.8%. On the background of falling prices for black gold and risks a global trade war there is a weakening of the ruble. The corridor is expected today on the pair dollar/ruble is 65.1-65.8 per, Euro/ruble – 73,0-73,7. EUR/USD – 1,119.
Donald trump said it will increase tariffs on imported Chinese goods worth $200 billion with 10% to 25%. Moreover, he threatened in the near future to impose 25% tariffs on additional goods to $325 billion, however, just this week it was expected that the talks will be at the finish line and the transaction is concluded.
Some experts do not rule out that trump’s words – a way to exert additional pressure. According to The Walls Street Journal, the Chinese side was surprised by this abrupt change of rhetoric trump.
Our view is that the situation is very worrying, the world could face a crisis comparable to the collapse of 2008. Especially if a trade war will coincide with the bankruptcy of any respected financial companies such as Deutsche Bank. S&P below 2000 points and oil at $30 can become a reality. Trump, in principle, still, it is the global economy does not like. But financiers and equity investors around the world have not sweet. We closely monitor developments and urge investors to exercise caution.
As a protective tool against the crisis, we traditionally recommend preference shares “Surgutneftegaz”. Our estimate of the dividends is 7.6 RUR per share, dividend yield is 19%.
____________________ Alexander Razuvayev,
Director of information-analytical center,