Moscow. November 23. The shares opened on Monday with the moderate decrease of prices of blue chips amid falling oil prices and reduced China, indexes MICEX and RTS per minute bidding lost 0.4-0.9 percent.
By 10:01 Moscow time, the MICEX index amounted to 1819,83 paragraph (-0,4%), RTS index – 880,32 paragraph (-0,9%), ruble prices of most blue chips on “the Moscow stock exchange”decreased by 1.1%.
The dollar at the start of the auction rose to 65.4 cents (+0.78 rouble).
The ruble decreased the rate of VTB shares (-0.1%) and Gazprom (minus 0.6%), LUKOIL (-0.1%) And “Mobile TeleSystems” (-0.1%) and NOVATEK (-0.4 per cent), “NorNickel” (-0,6%), “Polyus Gold” (-0,2%), “Rosneft” (-0,8%), “Rostelecom” (-0,8%), Sberbank of Russia (-1,1%), Tatneft (-0,4%), “FGC UES” (-0,1%).
Grew shares “Surgutneftegaz” (+0,03% +0,1% “prefs”), “Magnet” (+0,03%).
Indexes in the U.S. rose on Friday within 0.5 per cent on Monday in Asia report the mixed dynamics (China’s Shanghai Composite slipped 0.6%), plus U.S. stock futures (contract on the S&P 500 rose 0.1%), but cheaper oil.
Support to the Chinese market on Monday has the resumption of IPO companies, leading to growth of stock quotes brokers. The Chinese Commission on regulation of securities market (CSRC) gave permission to conduct public offerings of five companies on the Shanghai stock exchange and five companies in Shenzhen.
The head of the European Central Bank (ECB), Mario Draghi, speaking in Frankfurt on Friday, reiterated the readiness of the Central Bank to take all necessary measures for the speedy increase in inflation in the Eurozone to the target level of 2%. On the statements of Draghi, the Euro against the US dollar dropped 0.5%. The weakness of European currencies plays into the hands of companies that are focused on export products.
The degree of uncertainty in the world has declined, the financial situation in the U.S. improved, the us labor market improved, and the only unpredictable factor remain sharp fluctuations of the dollar against the Euro, said Friday the head of the Federal reserve Bank (FRB) of St. Louis James Bullard. He also drew attention to the reduction of concerns about economic growth in China and the concomitant weakening of the volatility in the financial markets.
Previously Deputy Chairman of the fed Stanley Fischer said that the fed has done everything possible to prepare the world markets to raise the key interest rates in the US.
According to futures quotations at the level of basic interest rates, the probability of its increase at the meeting of December 15-16, the market is estimated at 68%.
Oil prices decline on Monday amid the strengthened US dollar, and negative forecasts of Venezuela for the oil market. Futures for Brent crude on the January costs $43,8 per barrel (term and 1.9% and +1.1% on Friday), the price of WTI is $40,75 per barrel (-2,7%).
Meanwhile, the oil Minister of Venezuela, Eulogio del Pino said yesterday that oil prices may fall to about $25 per barrel if OPEC does not take action to stabilize the market. He reported that Venezuela has reached out to the remaining countries of the OPEC with an appeal to take measures that would help oil prices to rise to equilibrium level of $88 per barrel. This level of prices would allow the oil producers to cover the costs needed to develop new oil production capacity, he said. According to him, Saudi Arabia and Qatar are considering the proposal.
Next OPEC meeting will take place on 4 December. The share of OPEC accounts for 40% of world oil production, oil production by the countries belonging to the organization exceeds the official quota of 30 million barrels per day for 17 consecutive months.