Russian stock market has opened on the positive territory on Tuesday, rebounding after Monday’s drop.
Investors however expect stocks to fall later in the day, as oil
prices are declining and the international outlook remains
negative on China liquidity crisis and concerns over Fed’s
stimulus.
Russian stocks ended Monday with losses. The MICEX slipped 0.66
percent to the 1290.26 mark, while the RTS lost 1.02 percent to
1233.04. Equities of KAMAZ, Novatek, InterRAO, Rosneft and E.On
Russia kept Russian market trade afloat with gains.
Major European stock markets also slumped Monday, reacting to
worries over the Chinese liquidity crisis and the withdrawal of
US Federal Reserve stimulus.
London's FTSE 100 index of leading shares slid 1.42 percent to
6,029.10, while Frankfurt's DAX 30 fell 1.24 percent to 7,692.45
points. In Paris the CAC 40 dropped 1.71 percent to 3,595.63
points.
Stocks in Spain and Italy also fell on rising Italian and Spanish
state borrowing costs on the bond market.
US stocks ended Monday’s roller coaster trade with steep
declines. Benchmark stock indices demonstrated a steep fall after
the opening bell.
The Dow Jones Industrial Average had been down as much as 250
points on Monday ending down 139.84 points, or 0.9 percent, at
14,659.56.
The S&P 500 finished down 19.34 points, or 1.2 percent, at
1,573.09, with all of its 10 major sectors in negative terrain.
The NASDAQ closed down 36.49 points, or 1.1 percent at 3,320.76,
following an intraday low of 3,294.95 and a session high of
3,344.66.
Tuesday’s news from Europe will include the UK’s industry data on
mortgage approvals, reflecting the demand in the housing sector.
Bank of England policymakers are to testify on inflation and the
economic outlook before the parliamentary treasury committee,
Investing.com reports.
Also on Tuesday Italy is to hold an auction of 10-year government
bonds.
The US is to publish official data on durable goods orders and
closely watched reports on consumer confidence and new home sales
later in the day.
Asian stocks were struck by worries over problems in the Chinese
banking system. Mainland Chinese stocks fell sharply for a second
straight day on Tuesday. Losses hit markets in other Asian
regions as well.
The Shanghai Composite lost 3.8 percent to 1,888.69 and Hong
Kong's Hang Seng dropped 1.4 percent to 19,533.05. Japan's Nikkei
225 shed 1.6 percent to 12,848.96. South Korea's Kospi slid 1
percent to 1,780.81 and Australia's S&P/ASX 200 declined 0.5
percent to 4,645. Stocks in Taiwan and the Philippines also fell.
Brent oil is currently trading at $101.35, while WTI is up 0.17
percent, trading at $95.30.