Moscow. December 17. The shares opened on Thursday a further increase in blue chips after rise of the world stock markets with the expected increase of the Fed interest rate, the constraint falling oil prices; indexes MICEX and RTS per minute bidding has risen 0.2 to 0.4%.
By 10:01 Moscow time, the MICEX index amounted to 1762,26 points (+0,4%), RTS index – 786,23 points (+0,2%), ruble prices of most blue chips on the Moscow exchange grew by less than 1 percent. The dollar at the start of the session is 70,63 ruble (+0.23 per ruble).
Increased rouble value of the shares of VTB (+0.6 per cent), Gazprom (+0.6 per cent), “Gazprom oil” (+0,2%), LUKOIL (+0,3%), Magnit (+0,3%), “Mobile TeleSystems” (+0,3%), NOVATEK (+0.4 per cent), “NorNickel” (+0,4%), “Rosneft” (+1,4%), Sberbank (+0,7%), “Surgutneftegaz” (+0,1%), “Tatneft” (+0,9%), “FGC UES” (+0,8%).
U.S. stocks yesterday rose for the third day in a row (the S&P 500 virtually eliminated the decline since the beginning of December), on Thursday rose Asia, but declining U.S. stock futures (contract on the S&P 500 index dipped 0.3 percent) and oil.
The Federal reserve system of the USA following the meeting on December 15-16 raised the interest rate on Federal loan funds (federal funds rate) by 25 basis points to a target range of 0.25-0.5% per annum, in line with expectations.
Press conference by the fed chair Janet Yellen was raising in optimistic vein: inflation will increase, the economic situation improved, the international situation stabilizes.
The U.S. unemployment rate is only 5% less than at the beginning of the previous cycle of interest rates increase in 2004 when it was 5.3%.
In the future, the fed intends to “closely monitor” the actual inflation for the purpose of determining growth rates, with the Central Bank believe that the growth rate of prices in the U.S. will accelerate in the foreseeable future will return to targeted level of 2% per annum. Given the current situation the increase in rates will be gradual, long-term target for the current cycle is 3.5% as in the September forecast.
Graph of projections of fed officials still suggests four rate increases in 2016 and restrained pace of monetary tightening in 2017 or 2018.
In order to maintain the basic interest rate in its new target range, the fed also announced the allocation of bonds worth up to $30 billion a day to conduct one-day reverse repo operations. In total, we are talking about $2 trillion.
Oil is getting cheaper because of rising stocks in the USA (reserves of crude oil last week rose by 4.8 million barrels with expectations of an reduction by 1.5 million barrels; also exceeded the expectations of growth of stocks of gasoline and distillates) and the strengthening of the dollar on the fed’s decisions on rate.
Futures for Brent oil for February is $37,22 per barrel (-0,5% and is 3.5% on Wednesday), the price of WTI is $36,71 per barrel (-0,1% -4,9% yesterday). Oil remains at the lowest levels in several years – since February 2009 for WTI, with the end of 2008 – for Brent.