Alfa Morning Bulletin: 4 June 2021

  • Talk of tapering sends the markets into risk-off
  • Cyclical stocks were under selling pressure on Thursday
  • Markets on the back foot ahead of US payrolls report

Talk of tapering sends the markets into risk-off: Markets were in decline on Thursday due to an uptick in geopolitical tensions between the US and China as Joe Biden plans to amend an American ban on investments in companies linked to the Chinese military. Adding to the risk-off pressure was a statement from a US Federal Reserve official who said the central bank should begin discussing a timeframe for tapering bond purchases. There was some profit-taking in Russian equities – RTSI (-0.4% @ 1,636) and IMOEX (-0.3% @ 3,805) – particularly in the cyclical sectors, which have been the recent outperformers. The ruble retraced a small part of its recent gains (-0.1% @ 73.28) but that was against a strengthening US dollar (DXY +0.4% @ 90.28). Oil prices held firm at the highs tested Wednesday (Brent -0.1% @ 71.31).

Markets on the back foot ahead of US payrolls report: Russian equities have opened lower this morning as investors take defensive positions ahead of the US monthly payrolls report scheduled for release later today. The US payroll data for May scheduled for release later today may determine short-term market sentiment. Investors and economists will be scrutinizing whether the April miss was a one-off, on the other hand strong numbers will further stoke inflation fears and talk of tapering. As we go to print US futures are moving higher as traders speculate on how much longer central-bank stimulus may be needed to support the economic recovery.


National welfare fund will fully divest all dollars in the coming months – NEUTRAL

NLMK announced HBI production development project – POSITIVE

HeadHunter announces pricing of 4.5mn ADS SPO at a $37.00/ADS – NEUTRAL

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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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