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Alfa Morning Bulletin: 7 June 2021

  • Markets fluctuated on Friday ahead of the US payrolls but closed with strengt
  • Russia poised to start the week on a cautious note
  • Market rally eased as rebound in US payrolls is tempered by inflation fears

Markets fluctuated on Friday ahead of the US payrolls but closed with strength: Markets fluctuated on Friday ahead of the US payroll report for May but found tractions near the bell. Russian stocks traded mainly in red before a broad-based recovery in final stages of the session – RTSI (+0.6% @ 1,647) and IMOEX (-0.05% @ 3,807) – with oil & gas names and tech printing moving higher while banks and metals & miners saw sellers. The ruble was traded in a sideways pattern before finding traction (+0.5% @ 72.77) and oil prices ticked higher (Brent +0.8% @ 71.90).

Russia poised to start the week on a cautious note: We expect the Russian stock markets to push higher today supported by the reflation trade. The latter got a boost from Chinese trade data, which showed imports at the highest level in 10 years, a boon for everything from copper to iron ore and oil prices. That said, any gains will be capped by renewed inflationary fears. Investors are also wary on how shares of major tech firms would react to the G7’s agreement on a minimum global corporate tax rate of at least 15%. The market is also wary of comments from Treasury Secretary Yellen, who said President Joe Biden should push forward with his spending plans even if they spark inflation that persists into next year, adding a “slightly higher” interest rate environment would be a “plus.”

KEY NEWS

Russian retail trade up 34.7% y/y in April, GDP growth reported at 10.7% y/y – POSITIVE

ALROSA updated its plans with regards to Mir mine restoration: POSITIVE


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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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