US sanctions against Huawei topple the stock market

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World stock markets on Thursday, may 23, ended in the red zone. The markets fear that the introduction of the Chinese Corporation Huawei in the American “black list” prohibiting her to purchase equipment and components from American manufacturers, as well as limiting the sale of its products in the United States, will lead to an escalation of the trade war, the United States and China. At the close of trading Thursday, the Dow 30 fell by 1.11%, a little more diminished the S&P 500 index was 1.19%, while the index of high-tech companies Nasdaq has fallen further, to 1.58%.
Asian stock markets have perceived a worsening of relations between the two great powers is ambiguous: Japan’s Nikkei 225 this morning in the red, and Chinese and Korean stock indexes are showing mostly a positive dynamics.
The Russian stock market on Thursday fell along with all the other markets. The RTS index on may 23 dropped by 1.34%, while the index of Masuri fell slightly less, by 0.76%. Stronger than the rest of the market fell ordinary and preference shares Mechel ordinary shares of Tatneft and Sberbank. Against the background of falling indexes, however, shares of the Bank “VTB” has shown growth of more than 10%, also increased the shares of “Russian grids” and AFK “System”. Today the Russian indexes can be opened in different directions. We expect to see today the RTS index in interval 1200-1280 points, while the index Masuri — in the corridor 2600-2650 points.
The price of Brent crude on Thursday on the ICE fell by 6.3%, to $66,78 per barrel and the price of Texas crude fell by 7.6% to $58,12 per barrel. The worsening of relations between China and the United States and the growth of commercial oil reserves in the US put pressure on oil prices, however, this morning, oil prices began to slightly improve in price. In the near future, our forecast of Brent price of $66-68 a barrel.
The ruble at the opening of trading today may be a little stronger. Expected rate of the ruble today is 64.2-65.5 rubles to the dollar and 72-73 RUB for Euro.
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Natalia Milchakova,
Deputy head,
“Information-analytical center “Alpari”