Tellimer

Alfa Morning Bulletin: 17 September 2020

  • Markets assumed holding pattern ahead of Fed meeting
  • The ruble edged higher (+0.1% @ 74.93) supported by a weaker dollar and growth in the oil price
  • Russia caught in risk-off downdraft

Markets assumed holding pattern ahead of Fed meeting: Markets treaded water yesterday ahead of the FOMC meeting. Reports the Russian government was mulling a mineral extraction tax (MET) on the metals & mining sector weighed down on Russian equities – RTSI (-0.2% @ 1,251) and IMOEX (-0.2% @ 2,975) – although such as move is unlikely, in our view, and we’ve been down that road before. The ruble edged higher (+0.1% @ 74.93) supported by a weaker dollar and growth in the oil price. The US dollar weakened as the Fed had been expected to maintain a dovish stance. Hurricane Sally, which has hit the US Gulf coast, was not enough to support oil prices (Brent -1.3% @ 41.69).

Russia caught in risk-off downdraft: Russian equities are set to trade on the back foot today as the overall market trend moves into risk off after the US Fed was more hawkish than expected last night and fell short of unveiling fresh stimulus. The US dollar is strengthening and commodities prices are slipping lower along with EM currencies, including the ruble.

KEY NEWS

Finance Ministry unveils 2021 budget draft -- MIXED

Consumer prices decreased by 0.1% MTD as of 14 September – POSITIVE


Most Viewed See all latest