Market Buzz: Russian stocks to start off week in the red
Russian stocks are likely to trade in the red today against a negative backdrop outside Russia and a lack of positive macroeconomic news. A drop in oil prices will also contribute to the expected slide on Russian floors.
Russian stocks closed mixed on Friday, March 15. The MICEX fell
by 0.26% and the RTS grew 0.13%. MRSK North Caucasus,
Pharmaceutical chain 36.6, Gazprom Novatek and Raspadskaya Coal
Company were among the biggest gainers on Friday. Shares of
Vozrozhdenie bank, Polyus Gold, Aeroflot and TGK-1 fell in
value.
European floors closed Friday’s session in the red. The UK’s
FTSE100 declined by 0.61%, the German DAX lost 0.19% and the French
CAC40 dropped by 0.71%.
US stocks also closed in negative territory on Friday. The Dow
dropped 0.17% following continuous growth last week, the S&P500
lost 0.16% and the NASDAQ declined by 0.3%.
Little is expected on Monday in the way of macroeconomic news. The
eurozone will release its foreign trade balance update for January;
trade with countries outside the EU is expected to have produced a
3.4-billion-euro surplus.
The US National Association of Home Builders (NAHB) will release
its developer confidence update. The index – measured on a scale
from 0 to 100 – is expected to stand at 48 points.
Russia's United Aircraft Corporation will hold a special meeting of
shareholders to discuss about 30.8 billion rubles in cuts to the
company’s charter capital fund. Russian Global Ports is expected to
release its 2012 financial statement.
Asian floors are currently trading in the red: The Shanghai
Composite has lost around 1.02%, the Hang Seng is up 2.0% and the
Nikkei has dropped 2.1%.
Oil is declining: Brent is down by 1.33%, while Light has dropped
by 1.31%. Prices are sagging due to investor fears of slowed growth
in the global economy. The US has excluded 10 eurozone nations and
Japan from sanctions against Iranian oil imports. Rising exports of
oil from Iran will likely lead to a decline in global oil
prices.
