Market Outlook

28.12.2018

Global equity markets came under pressure again last week. As a result, the MSCI World and MSCI EM indices fell by 5.5% and 1.5%, respectively, in US dollar terms.

Russian equities in US dollar terms underperformed those of emerging markets. Investors continued to take profits, mainly in oil and gas stocks, as the price for Brent crude oil fell by 11.2% in US dollar terms. On the other hand, there was some positive news that likely supported investor sentiment towards the Russian market. The US Treasury department is due to terminate sanctions against Russian public companies (please see next page for more details).

19.12.2018

The Russian equity market contracted last week following the global downward trend: the MSCI World index fell by 1.1% in US dollar terms. Russian equities underperformed its emerging market peers, as the MSCI EM index fell only slightly, by 0.9% in US dollars. The underperformance was mainly due to the correction in oil prices: the price for Brent crude declined by 1.6%. Additionally, the Central Bank of Russia hiked its key rate by 25 bp.

11.12.2018

The Russian equity market ended in the black last week. The performance was mainly driven by the 3.1% rise in the price of Brent crude oil in US dollar terms. Oil prices were supported by the outcome of the OPEC+ meeting at which the member countries decided to deepen and extend the output cut deal.

04.12.2018

The Russian equity market rose last week, but lagged its peers: The MSCI Emerging Markets and MSCI World indices rose by 2.7% and 3.4% respectively in US dollar terms. There was some pressure at the start of the week from the geopolitical incident involving Ukrainian military ships in the Kerch Strait.

28.11.2018

The Russian equity market contracted last week in line with a global equity sell-off. The MSCI Emerging Markets and MSCI World indices fell by 1.7% and 2.8%, respectively, in US dollar terms.

Russian equities remained relatively resilient in the face of a sharp drop in oil prices. Brent crude oil fell by 11.7% in US dollar terms to below USD 60 per barrel. The drop came on the back of fears that OPEC+ might not cut production to support the supply/demand balance in the oil market. The strong fundamentals of many Russian companies and the resilience of country’s economy to external shocks supported the Russian equity market.

19.11.2018

Russian equities rose last week in US dollar terms despite the drop in oil prices. There was positive news: the US is unlikely to impose new sanctions against Russia until 2019.

13.11.2018

Russian equities fell last week on the back of the drop in broader emerging markets and oil prices. The MSCI Emerging Market index fell by 2% in US dollar terms, mainly due to the US Federal Reserve indicating that it may raise interest rates again in December. Additionally, lower oil prices exacerbated negative investment sentiment towards Russia.

13.11.2018

Russian equities rose last week despite the drop in the price of oil. The surge of optimism on global markets helped Russia to end the week in the black. This optimism was mainly due to improved investor sentiment surrounding the hope that Sino-US trade tensions could soon ease.