Moscow. December 4. The Russian stock market on Friday plunged on expectations of growth rates of the US Federal reserve after the release of strong statistics U.S. Department of labour, and against the backdrop of falling oil on the OPEC decision to raise quotas on extraction of raw materials. The RTS index fell to the levels from two months ago.
Following the results of trading MICEX index fell to 1755,22 point (-1,8%, the low of the day – 1741,61 points), RTS index – to 811,72 point (-1,8%), ruble prices of most blue chips on the Moscow exchange fell in the range of 4%.
The dollar rose to 68.1 cents (+0.59 ruble).
During the week the MICEX and RTS indexes fell 2.3 to 5.2 percent, the dollar rose by 1.62 ruble.
Fell on Friday the ruble share price “Gazprom” (-1,6%), LUKOIL (-2,7%), Magnit (-3.8 per cent), “Mobile TeleSystems” (-1,3%), NOVATEK (-3,9%), Norilsk Nickel (-2.9 percent), “the pole Gold” (-0,2%), Rosneft (-2,4%), “Rostelecom” (-2%), Sberbank of Russia (-0,9% and -2.9 percent “prefs”), “Surgutneftegaz” (-2,1% and -0.7% “prefs”), “Tatneft” (-1,6%), “FGC UES” (minus 0.6%).
Surplus was recorded for the shares of VTB (+0,8%), “Gazprom oil” (+0,6%).
Morning positive for the market was the news from Moody’s Investors Service which raised the Outlook of the credit rating on government bonds Russia to “stable” from “negative” and affirmed the rating at “Ba1”, one notch below investment grade. Among the factors that influenced this decision, the Agency calls the stabilization of external Finance, and reducing the probability of new strong shock to the economy, for example, as a result of tightening Western sanctions, over the next 12-18 months, said the Agency. Earlier Moody’s downgraded Russia to speculative grade in February.
Positive news also include statistics Emerging Portfolio Fund Research (EPFR) about capital inflows: cumulative net cash inflow to the funds investing in the shares of the Russian Federation, during the week of 26 November to 2 December amounted to $105,6 million against inflow of $104.6 million the previous week.
However, markets reacted negatively to comments by the head of the Federal reserve system (the fed) Janet Yellen that the us economy is ready for tighter monetary policy. These expectations on the growth rate strengthened on Friday after data from the labor Ministry showed US the growth of jobs outside agriculture in November to 211 thousand with expectations of growth by 200 thousand
The oil market turned down after the news that OPEC at session on Friday has set the production quota at the level of 31.5 million barrels per day, as reported by the Agency Bloomberg with reference to a delegate of the summit, familiar with the decision. Thus, according to him, the new level of quota does not account for prey that have entered into OPEC Indonesia (produces about 800 thousand b/d).
Officially, OPEC’s decision has yet to be announced.
Since December 2011, the quota for OPEC production stood at 30 million b/d, but actual production of the cartel in the last fifteen years exceeds this benchmark (1.3 million b/d in October).
Futures for Brent oil for January on Friday fell to $43,29 per barrel (-1,3%), the price of WTI to $40,22 per barrel (-2,1%).