The Russian stock market would not rise for a long time

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On Tuesday in the Russian stock market there is a local technical rebound. Recover indexes, bonds and currency, which depreciated considerably in recent days and given the opportunity for purchases at lower levels. So, RTS after the initial rise of 0.8% accelerated recovery to 1.25%. Index Mosberg after some hesitation also went to growth, adding 0.4 percent. Brent crude is testing the 78 mark for the first time since September 5. The ruble has returned to the dollar under the mark of 70 rubles.
Quotes “Rusala” losing 0.6 percent after losing 6 percent on the Hong Kong stock exchange on the background of discussions about the risks of further reduction of aluminium production plants of the company due to existing constraints on the expectations of additional sanctions from the United States in October of this year. Moreover, the decline in production volumes, which will affect the main factories giant in Siberia, could begin as early as this month. However, the final decision has not been made.
The improvement of the external background, coupled with increasing oil prices created conditions for a rollback of domestic assets, but future discussion of new sanctions in the U.S. Senate will not allow the current correction to develop into something more. It concerns including the ruble, which is temporary lull in the global markets in General and on the sanctions front. So even in case of further rise in prices for oil more active the flow of interest of speculators should not be expected.
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Igor Kovalyov,
Analyst
InstaForex companies group