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Alfa Morning Bulletin: 26 May 2021

  • Tech stocks led markets higher as the US Fed moved to ease inflation concerns
  • Markets on edge
  • Russia poised for growth

Tech stocks led markets higher as the US Fed moved to ease inflation concerns: Market activity was lethargic on Tuesday and many investors were on the sidelines as inflation worries continued to linger despite reassurance by the Federal Reserve that monetary tightening will not be required to manage economic growth and inflation. Tech stocks benefited from the Fed’s comments both on the NASDAQ and the Russian indexes. Russian equities pushed higher – RTSI (+0.6% @ 1,580) and IMOEX (+0.7% @ 3,681) – with mixed trends sector-wise. The ruble remained firm (+0.2% @ 73.31) and maintained an advance that has seen it gain 2.3% since the start of May supported by an easing of sanctions risk and strong oil prices. Crude quotes added to the gains of the past two sessions (Brent +0.2% @ 67.64).

Russia poised for growth: The Russian stock market has open higher this morning and we expect that trend to continue today. The reflation trade remains intact but adding to that is the fact that with inflation fears easing investors are again looking at growth stocks.

KEY NEWS

Industrial production up 7.2% y/y in April, unemployment rate down to 5.2% - NEUTRAL

Polyus 1Q21 IFRS preview


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The contents of this document have been prepared by Joint Stock Company “Alfa-Bank” ("Alfa Bank") as Investment Research within the meaning of Article 36 of Commission Delegated Regulation (EU) 2017/5...

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