Morning Note /

Alfa Morning Bulletin: 22 November 2021

  • Covid surge and lockdown sends markets lower

  • Pivot out of cyclicals into tech and stay-at-home stocks

  • Russian stocks face further woes

22 November 2021
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Covid surge and lockdown sends markets lower: A brutal fourth wave of Covid spreading rapidly across Europe, triggering national lockdowns across the continent and forcing companies in many countries to put workers on remote working, is raising fears of the impact for growth and economic recovery. That sent crude prices tumbling lower (Brent -2.9% @ 78.89) and the ruble extended Thursday’s losses (-0.5% @ 73.48).

Amid that backdrop, there was an aversion to risk and EM assets. Russian equities dropped sharply on Friday – RTSI (-2.2% @ 1,723) and IMOEX (-1.9% @ 4,016) – with cyclical shares hardest hit, particularly commodities stocks. US 10-year Treasury yields are retreated and the dollar is strengthened.

Russian stocks face further woes: We expect the Russian stock market to remain under pressure today as oil prices extend their losses and as the rapid spread of Covid across Europe and fresh lockdowns trigger a pivot out of cyclical stocks into tech and stay-at-home shares. Traders are waiting for Joe Biden’s pick for the Fed Chair nominee from Governor Lael Brainard (dovish) and incumbent Jerome Powell (likely to become a bit more hawkish). US markets will be closed on Thursday for Thanksgiving Day and the stock market closes early at 13.00 ET on Friday.


Polyus 3Q21 IFRS preview