Dynamics of the Moscow exchange index – the influence of “NorNickel” and China
Analysts are concerned: the Russian stock market shows no noticeable changes. The main event of mid-April 2018 was the sale of 1.7% of “NorNickel” shares. This is a Russian mining and smelting company uniting a group of enterprises. Securities of a joint stock company amounted to almost half of the turnover within the index.
It is also assumed that the Cypriot firm Crispian Investments oligarch Roman Abramovich may increase the supply of securities in the near future. In short, “NorNickel”, due to positive news, is in a better position than the market as a whole.
China, in turn, is not happy with positive news. Country production have declined in February, having been partially recovered in March.The authorities are trying to support economic growth through government leverage. However, there is a curtailment of a number of programs, which indicates a downward trend in the growth of the Chinese economy and even a possible recession. In particular, investments in solar energy decreased by 48%, and in renewable sources as a whole – by 25%. This is a kind of disturbing stimulus. When the state is doing well, it invests in its energy-independent future and ecology. The example is demonstrated by the United States through its impact investment: thanks to clean air and promoting a healthy lifestyle, the country gets a healthy workforce. And there are more than 600 thousand vacancies in this market.
Separately, it should be noted the lack of progress in negotiations between China and the United States on a new trade agreement. It seems that everyone is resigned to the existing state of affairs and do not want to change anything. And in vain – the positive news would have stirred the stock market and made it work faster.
Dynamics of the Moscow exchange index is calmed down with Brexit
Russian stocks are traditionally affected by the price of Brent crude oil. In the matter of creating an artificial deficit and, consequently, price growth, Russia acts in the interests of OPEC + and the USA. The result of the coordinated work of the countries is Brent for $ 71 a barrel. And also – 63.5 for WTI. It should be said that the Brent brand during the week rose slightly in price and fell. But fluctuations were carried out within 0.5%. This, in part, explains the absence of the dynamics of the Moscow exchange index.
In turn, oil has been sluggishly reacting to the news lately. This means that most of them are not able to globally influence global markets. In particular, there is still confusion associated with the exit of the UK from the EU. The country’s parliament spoke in favor of smooth decisions in agreement with Brussels. Knowing the general bureaucracy of Europe, the process can take years. Consequently, Brexit in the near future just will not be a source of negative news and stock market fluctuations.