The Russian stock market went into a deep dive

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The Russian stock market on Friday morning trading in General, the “red” zone. Dollar-denominated RTS index and the index of Mosuri are in the red. Shares of “Gazprom” adjusted after recent rapid growth, but we are confident that soon the company’s securities will continue to rise in price. Index Mosuri will hold today’s auction in the hallway 2550-2580 points. The U.S. government has expanded the list of Magnitsky, however, speculators react poorly to non-financial pressure.
Brent crude is trading at $for 72.79, adding 0.23 percent. Military tension remains the main commodity market of the dark. Fighters from the movement “Ansar Allah” has announced that it has undertaken the largest operation using seven drones against the Saudis since the beginning of military actions in Yemen in the spring of 2015. USA announced the existence of a threat from Iran. From Baghdad and other Iraqi cities were evacuated non-operational staff of diplomatic missions. Tightening the US aircraft carriers and other military forces.
According to information from business circles, the failure of the Bank of Russia on the minting of coins below the denomination of the ruble can be considered as typical domestic conditions the signal on a new monetary reform. Most likely, with a denomination of one or two zeros (the probability of the second option), it will be practically restored the Soviet ruble to the dollar. We have long noted that the ratio of 1 to 100, suggests itself. And this step will be the actual completion of market reforms in Russia, initiated by Yeltsin and Gaidar in 1992. The ruble is now trading without a clear dynamics. The corridor is expected today on the pair dollar/ruble is 64.5 and 64.9, Euro/ruble — 72,1 is 72.5. EUR/USD – 1,118.
Russia and the United States, despite the crisis in relations successfully interact. This was the US Secretary of state Mike Pompeo said in an interview with Fox News Radio, which he gave after returning from Sochi, where he held talks with Vladimir Putin and foreign Minister Sergei Lavrov. Pompeo has confirmed that he considers the negotiations successful. Speaking about cooperation with Russia, Pompeo said there are three areas where Washington and Moscow are already successfully interact. The first of these is the problem of Afghanistan. Another example of such cooperation — North Korea. The third point of contact between the two countries — the fight against terrorism.
This news, of course, only positive for the local market. Everyone understands that in the near future sanctions will not be lifted or cancelled. However, this is a good sign, saying that sooner or later the political discount of the Russian chip is reset. In this case the dollar-denominated RTS index can rewrite the historical highs of 2008, 2300-2500 points.
Alexander Razuvayev,
“Information-analytical center “Alpari”