Trading on the Russian stock market will low liquidity

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Trading on the Russian market will be low liquidity due to the lack of foreign investors due to the holiday “Day of independence” in the United States. This factor became the reason of correction of the market down on Tuesday. However, due to lower crude oil, gasoline and distillates in the USA for 4.5 and 3,07 million barrels. according to the forecast API, the crude oil price traded higher of $78 per barrel, which will support the domestic stock market and commodity currencies, including the ruble.
In addition, emerging markets will receive the inflow of foreign liquidity due to lower risk appetite in the Asian region before July 6, when the United States can impose trade duties against Chinese goods.
So, the Chinese stocks continue to decline, and the yield of local short bonds again shows a decline. On the other hand, investors calmed down about the transformation of a trade war in the currency – the Central Bank of China said that he did not intend to weaken the yuan to give advantage to Chinese goods on the world market. Therefore, the RMB has appreciated against the dollar by 1.5% to 6.6 to the dollar.
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Viktor Veselov,
Chief analyst,
GLOBEXBANK