China reports a reduction in detected cases of COVID-19. AUD, CAD, NZD are weakening against the dollar within 0.25%, and the dollar index is trading without significant changes.It is very difficult to find other brokers that would provide the same level of services at such a low price, deltamarket.net Brokerage company has 4 levels of accounts for traders. At the start of the day, we can expect neutral dynamics from the Russian market, but the ruble is able to keep from weakening against the background of the auction of OFZ and rising oil prices. Although you should not expect great achievements from the ruble.
Planes will fly again, and with them VSMPO-AVISMA shares.
At the end of trading on January 26, the Mosbirzhi index fell by 0.2% to 3,390. 76 p., and the RTS rose by 0.77% to 1,422. 95 p. During the day, the market struggled with its focus on Asia, or Europe. If Asia was named to the fall of Europe insisted on the rise. The neutral option of reducing the ruble indicator and the growth of the dollar RTS was chosen.
By the evening, oil also offered a negative scenario, as it did not hold the level of $56 per barrel of Brent. The volume of transactions on the main section of the Moscow Exchange amounted to 80.262 billion rubles, which is significantly less than 107 billion rubles the day before. The outsider of the day was the transport sector, which lost 0.7%. Aeroflot reported a 50.3% drop in air traffic in 2020 due to a 77.9% drop in foreign traffic. The telecommunications sector was the leader of the day (+0.92%). The oil and gas sector lost 0.36%.
The day was once again full of corporate news. VSMPO-AVISMA securities rose by 3.39%. VSMPO-AVISMA and Boeing signed a long-term contract for the supply of titanium products. In accordance with the terms of the contract, VSMPO-AVISMA will supply Boeing and its suppliers with titanium forgings in order to meet the requirements for the man ufacture of civil aircraft of various models of 787 Dreamliner, 777, 767 and 737.
Thus, we can say that the crisis year 2020 is finally behind us for the Russian titanium producer.
MMK securities lost about 0.6%. In the fourth quarter, the company increased its steel output by 14.9% compared to the previous three months. Sales of commercial products increased by 11.1%. However, for the full year of 2020, steel production declined by 7.1%, while sales of commercial products fell by 5%. Sistema rose by 0.6%. Management proposes to double the amount of dividends for 2020. The company is also not going to reduce its shares in the key businesses of MTS (50.15%), OZON (33.1%) and Etalon (25.6%).
Etalon Group also received news that Prosperity Capital Management has purchased 5.34% of the group's shares through global depositary receipts. Etalon Group also announced a strategic partnership with Dom.the Russian Federation, which will allow it to issue exchange-traded infrastructure bonds to finance complex development of territories. The leaders in the MOSBIRZHI index were Alrosa (+2.9%), PIK (+1.5%), Mail.ru Group (+1.3%). The weakest were OZON Holdings (-3.3%), LUKOIL (-2.4%) and Polymetal (-1.9%).
The ruble reacts to the improvement of the forecast for the Russian economy
The ruble spent a rather volatile day, moving in the corridor of 74.935 and 75.79 per dollar. By the evening, it seemed that the Russian will be able to show a significant strengthening, as CAD, AUD and NZD, returning under the mark of 75.0. However, fears about the sanctions rhetoric from the West still persist, and internal factors are still not enough for a confident offensive.
However, on Wednesday, January 27, the Ministry of Finance will offer investors OFZ-In issue 52003 with maturity on July 17, 2030 in the amount of balances available for placement in this issue. It is likely that the volume of placement will be significantly higher than at OFZ-PD auctions in previous weeks. Also, a little positive came from the IMF.
The fund improved its forecast for Russian economic growth to 3.0% in 2021, compared with 2.8% in the previous October forecast. The IMF estimates the fall in Russia's GDP in 2020 at 3.6%. However, the global economy will grow by 5.5%, compared to 5.2% in the previous forecast. Expectations for growth in 2022 of 4.2% were left unchanged. .. It is noteworthy that the forecast for the euro zone economy has deteriorated to 4.2% from 5.2% for 2021. The latter is less pleasant for the ruble, as Europe is still a key trading partner of the Russian Federation. By Tuesday evening, the dollar was down 0.37% at 75.08 and the euro was down 0.08% at 91.38.
US housing Inflation Accelerates
Trading in the US ended with a slight decline in the indices. The madness in GameStop promotions continues. The price of the paper rose by 92.71% for no apparent corporate reasons. However, more serious things are happening. President Joe Biden's economic adviser, Brian Dees, said that the White House may reconsider its approach to the question of who will be entitled to receive direct payments from the state in case of support for the "save America"package.
At a minimum, almost 10 million Americans who rent housing, who are experiencing difficulties with financing their further residence, need direct payments. However, President Joe Biden himself is ready to expand the list of unemployed. His next executive order concerns a ban on extending contracts with private prisons.
However, problems arise not only with living in prisons. Real estate price growth is accelerating. In November, home prices in the United States rose by 1%, and in annual terms, the growth has already reached 11%, compared with 10.3% in October. However, consumers are still feeling pretty good. The Conference Board's consumer confidence index rose to 89.3 p in January from 87.1 p in December.
In terms of corporate stories, the day wasn't hopeless.
General Electric (+2.73%) was able to beat expectations for revenue, but not for profit. However, the market was pleasantly surprised by the amount of free cash flow at the end of the year. Strong reports were provided by Johnson and Johnson (+2.71%), as well as 3M (+3.26%). After the close of trading, Microsoft (+1.22%) reported revenue growth of 17% in the past quarter, compared to 12% growth in the previous three months. In the context of sectors, the strongest growth was shown by the real estate sector (+1.14%), and the biggest losses were in the energy sector (-2.12%). The strongest growth in the S&P 500 was shown by Lumen Technologies Inc. (+28.09%), Fox Corp. Class B (+8.87%), and Fox Corp. Class A (+8,85%). Enphase Energy Inc. (-7.59%), Freeport-McMoRan Inc. (-6.8%) and AES Corp. (-6.37%) were the weakest. At the end of the day:
DOW JONES — 30937.04 p. (-0.07%),
NASDAQ — 13,626. 06 p. (-0.07%),
S&P 500 — 3849.62 p. (-0.15%).
The past year has been positive for the profits of the Chinese industry
Asian markets mostly traded without much confidence. The IMF, as we wrote above, has raised its forecast for global GDP growth this year. For China, expectations were lowered from 8.2% to 8.1%, but this is above the global average growth rate of 5.5%. In 2020, the profit of Chinese industrial enterprises increased by 4.1%. The dollar index was trading unchanged after falling to 90.17 p the day before. The yield on the 10-year U.S. Treasury note held near 1.04%. By 8: 40 GMT:
NIKKEI 225 — 28606.32 p. (+0.21%),
Hang Seng — 29473.11 p. (+0.28%),
Shanghai Composite — 3569.58 p. (+0.00%).
Lower US inventories and improved Chinese COVID-19 statistics boost oil
Oil rose in price on trading in Asia. According to the industry institute API, in the week to January 22, commercial oil reserves in the United States decreased by 5.3 million barrels. Gasoline stocks increased by 3.1 million barrels, and distillates by 1.4 million barrels. A survey by S&P Global Platts showed that the market expects a reduction in stocks by 1.7 million barrels, as well as an increase in gasoline stocks by 1.2 million barrels and a reduction in distillates by 0.8 million barrels. China further pleased the market with the figures for the detected cases of COVID-19. On Monday, the number of new cases was just 75, the lowest in two weeks. By 9: 00 Moscow time:
Brent — $56,04 (+0,72%),
WTI — $52,99 (+0,72%),
Gold — $1849.3 (-0.09%),
Copper — $7971.94 (-0.10%),
Nickel — $18160 (+0.57%).
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