Tellimer

Alfa Morning Bulletin: 14 September 2020

  • Russia maintained advance
  • The ruble strengthened (+0.3% @ 75.05) against a weaker US dollar
  • Russia poised to advance but volatility remains elevated

Russia maintained advance: Markets were volatile at the end of last week as investors were drawn between optimism and pessimism at the end of a tumultuous week for equities and currencies. The Russian market recovered quickly from an opening stepdown Friday morning – RTSI (+0.5% @ 1,223) and IMOEX (+0.4% @ 2,910) – and cyclicals again led the advance. The ruble strengthened (+0.3% @ 75.05) against a weaker US dollar. Oil prices fluctuated before closing lower (Brent -0.6% @ 39.83). European markets held just above water (StoxxEuro600 +0.1%) as the euro continued to surge (EURUSD +0.2%).

Russia poised to advance but volatility remains elevated: The resumption of phase-3 vaccine trials at AstraZeneca has boosted market optimism this morning as new infections of Covid-19 reach record daily highs and new cases spiral upwards across Europe and the US. Russian stocks are expected to follow Asian shares higher this morning, however we caution that volatility remains. Investors are still awaiting new stimulus and support measures from the US after the failure of Congress to strike a deal last week. Oil prices are swinging between gains and losses this morning as traders weigh the prospect of a new hurricane approaching the Gulf of Mexico and expected to cause disruptions with an uncertain demand outlook that saw Brent lose almost 5.0% last week. In the Russian equity universe, cyclicals are anticipated to remain in demand led by metallurgy, oil & gas and banks. A rebounding ruble should provide support to retailers and utilities.

KEY NEWS

Gallery repairs at Stoilensky conveyor to continue till 23 September


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