The Russian stock market will act out the growth of oil at the opening

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Expect a minor recovery of the Russian market at the opening of trading, which mechanically act out the growth of oil prices by 2.4% to $85 a barrel on Monday. Commodity traders buy oil due to the projected shortfall, which is based on input from November of U.S. sanctions against Iranian oil exports, as well as problems with lack of volume of production and imports of oil in the United States. As an example, the Kuwait reduced crude oil imports to the U.S. with 300 thousand b/d to 92 thousand b/d since the beginning of 2018, and now completely abandoned due to unfavorable prices of $79 per barrel, when in Asia you can sell at a price above $80 per barrel.
However, the Russian market will be under pressure due to the fall in the MSCI EM 1.2%, which, in turn, reacted to the fall of the Chinese dematerialise Hang Seng index 2% by an alert Chinese authorities, U.S. military ships that they are near the sovereign territory of China.
Significant American statistics today will not follow, but will be Head of the fed Jerome Powell at the National Association of business and Economics. Therefore, the poor results of the purchasing managers in the sphere of production, namely due to the decline in new orders, which were published yesterday, will depart on the second plan, and the dollar could get support.
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Viktor Veselov,
Chief analyst,
Bank “GLOBEKS”