Tellimer

Alfa Morning Bulletin: 16 September 2020

  • Macro data from Germany and China boosted market optimism
  • Russian stocks outperformed peers – RTSI (+1.8% @ 1,231) and IMOEX (+1.8% @ 2,980)
  • Russia likely to assume holding pattern

Macro data from Germany and China boosted market optimism: Global markets continued their advance yesterday on macro data from Germany and China which show some traction in the economic recovery. Russian stocks outperformed peers – RTSI (+1.8% @ 1,231) and IMOEX (+1.8% @ 2,980) – led by cyclicals with oil & gas stocks gaining the edge on an oil price recovery. Crude prices found momentum after several days of weakness (Brent +1.6% @ 40.22) and the ruble advanced (+0.4% @ 74.94). European closed higher (StoxxEuro600 +0.7%).

Russia likely to assume holding pattern: The Russian market is likely to assume a holding pattern ahead of the FOMC meeting later this evening, although we expect it to hold on to recent gains. Cyclical stocks should maintain recent traction supported by encouraging macro data from Germany, the US and China as well as the subsequent strength in oil prices.

KEY NEWS

Industrial production contracted by 7.2% y/y in August – NEGATIVE

Steel prices in Europe recover on tight material availability – POSITIVE


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