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MOEX Russia, RTS indexes in the green by close of business

The dollar gained 0.34% to 74 rubles by the end of the trading session

MOSCOW, January 18. /TASS/. Russian market indices ended the trading session on Monday with an upward trend. The ruble-denominated MOEX Russia Index grew by 0.61% to 3,471.92 points on the Moscow Exchange. The dollar-denominated RTS Index added 0.04% and reached 1,474.86 points.

The dollar gained 0.34% to 74 rubles by the end of the trading session. The euro added 0.44% and climbed to 89.36 rubles by the close of business.

Brent oil futures dropped by 0.25% on the London’s ICE to $54.82 per barrel.

The trading activity was relatively low as the week kicks off and investors partly decided to wait until the opening of US markets tomorrow, Alexander Bakhtin from BCS Investment World comments.

The key driver for the mood of investors was probably the Chinese statistics, which showed growth by 6.5% in the fourth quarter of 2020 and by 2.3% as of 2020 year-end, compared to the drop by 6.8% in the first quarter of the last year, Alexander Osin from Freedom Finance says.

At the same time, negative news also comes from China. "New lockdown measures cover the increasingly higher number of people. Meanwhile, new COVID-19 cases globally approached the mark of 750,000 per day," Bakhtin noted. Furthermore, dollar strengthening against other global currencies along with concerns regarding the oil demand in 2021 and mounting drilling activity in the US apply moderate pressure on oil prices, the expert adds.

A certain increase in the geopolitical background strain has a moderate impact on the traders’ mood, Bakhtin noted. "Tomorrow, according to our estimates, the set of drivers for the market dynamics will not experience dramatic changes. We would like to highlight the release of the January economic mood index ZEW in Germany and data on inflation in the German economy in December," the expert said.

The market may be in the red as of the end of the current five-day period, considering worsening oil prices dynamics, weakened demand on the US market and ambiguous information background, Osin comments. Tomorrow chances prevail that the Russian stock market will be in the green in absence of new negative drivers, he adds.

According to BCS Premier’s estimates, the MOEX Russia Index can be within the range of 3,400-3,500 points on Tuesday. Freedom Finance expects the range for the MOEX Russia Index tomorrow to be 3,450-3,590 points.