MICEX, RTS indexes at odds as trading day ended

TASS Russian News Agency | Aug 13, 2019 at 5:02 PM

MOSCOW, August 13. /TASS/. Russian market indexes ended the trading session on Tuesday with mixed dynamics. The MOEX Russia Index dropped by 0.36% to 2,680.12 points by the close of business on the Moscow Exchange. The RTS index rose by 0.29% to 1,297.85 points.

The dollar dropped by 0.61% against the ruble to 65 rubles. The euro fell 0.89% to 72.7 rubles.

Brent oil futures prices with settlement in October 2019 grew by 5% to $61.35 a barrel on the London-based ICE today. Urals-Primorsk oil futures with delivery in October 2019 amount to $55.7 per barrel on St. Petersburg’s SPIMEX.

Growth on exchanges was caused by news that telephone talks can be held between representatives of the US and China by the end of August. It was also reported that introduction of tariffs for Chinese goods may be postponed until December 15 and that duties will not be imposed on certain goods, Bogdan Zvarich from Promsvyazbank says. Detailed information should appear later but news were enough to stir up buying across a wide range of assets, the analyst adds.

Market remaining under pressure

Pressure of negative information about strained trade relations between the US and China, protests in Hong Kong and risks related to economic separatism in Europe remains up-to-date, Alexander Osin from Freedom Finance comments. Nevertheless, the company admits the possibility for growth of the MOEX Russia Index tomorrow.

The Russian market will be under impact of mixed signals of the international economic situation on Wednesday, BCS Premier says. "On the one part, sudden positive news of Washington’s postponement of 10% duties on certain Chinese goods until December 15 initiated a wave of risky buying, which will continue tomorrow, in our opinion. On the other part, investors continue keeping an eye on crisis evolvement in Argentina, which may potentially threaten by growing cascade sales of assets across the whole segment of emerging markets," Sergei Deineka from BCS Premier comments.

The mood of tomorrow can be corrected by July statistics of China’s industrial output and first data on GDP for the second quarter of 2019 and the industrial output in the European Union, the analyst noted.