Friday, October 20, 2017

In the oil has a chance to continue to grow

In the oil has a chance to continue to grow

The Russian stock market closed on Friday in the green zone on the background of the overall positive trend that prevailed in world markets due to a sharp rise in crude oil price increases, as well as data on the GDP of the United States and a number of indices from the University of Michigan, which went much better than the expected value of that significantly reduced the fear of stalling the US economy into recession.

The leaders among the grown securities trading results were shares of financial companies (+ 1.08%), telecommunications (+ 1.06%) and mechanical engineering (+ 0.74%) sectors.

MICEX index rose by 0.71%, closing at 1816.73 points. RTS index lost 0.21% and closed at 757.45 points on the wave of the weakening of the ruble against the US dollar by the end of the regular trading session.

Crude oil prices rose significantly on Friday, breaking the strong resistance levels, from a technical point of view, it increased the likelihood of further price increases. The main reason for this behavior is still waiting for a positive outcome of the talks between OPEC and Russia to freeze the volumes of crude oil, which will be held in mid-March.

North Sea brand BRENT crude oil by the end of the global session increased by 2.41% - to 36.14 dollars per barrel. WTI West Texas by the end of trading rose less - 0.82% - to 33.34 dollars per barrel.

In the currency market, the ruble has grown in the wake of strengthening crude oil prices, but by the end of trading dropped due to profit-taking as the oil and the ruble. Intraday USD / ruble with the expectation of tomorrow to the end of the trading session in Russia grew by 0.67% - to 75.88 rubles per dollar. EUR / RUB, on the contrary, decreased by 0.05% - to 83.01 rubles per euro.

We can assume that on Monday, the Russian stock market can get good support, if oil prices mark BRENTzakrepyatsya above or at the level of 36.00 dollars per barrel.

Events of the day:
On Monday, the market's attention will focus on the publication of the data consumer price index in the euro area, as well as the index of business activity in Chicago and the index of pending sales in the real estate market in the US.

Sergei Kozlovsky, head of the analytical department of Grand Capital

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