New York: 07:44 || London: 12:44 || Mumbai: 16:14 || Singapore: 18:44

Reports Russia

Russian stock market daily evening report (December 06, 2013, Friday)

December 6, 2013, Friday, 17:52 GMT | 12:52 EST | 22:22 IST | 00:52 SGT
Contributed by Veles Capital


Stocks

Market today. The Russian market opened mixed this friday, mainly in the red zone following the dynamics of the foreign grounds. Exchange grounds in America closed negatively. S&P 500 (-1.2%) reduced to the minimal level within two weeks. The drop was provided by the positive stats in the US, which build up the probability of soon cut of QE. ?he European exchange indices reduced by the results of the fifth trade session straight, which is the longest non stop drop within the recent five months. The majority of exchange indices ATP closed the trade on Friday with no single dynamics while waiting for the data on new jobs and the unemployment level in the US. The price of Brent futures for February formed 111.0 USD per barrel (+0.4%), the price of WTI futures formed 97.49 USD per barrel (-0.1%).

By noon the domestic market warmed up to 1,439.22 points (+0.7%) at MICEX at the back of the positive correction in Europe.

As expected, the US showed positive stats on unemployment and the number of jobs. The level of unemployment dropped last month from 7.3% to 7%, reduction to 7.2% was expected. The number of new jobs outperformed targets and grew 18K and formed 203K. The income of citizens for October 2013 reduced insignificantly by 0.1% vs the previous month, when their growth formed 0.5%. Futures for the American indices are climbing Friday. The American macrostats forced uncertain reaction of the domestic market. At 5:30 pm MSK the RTS index lost 0.64% at a moment and formed 1,362 points, then corrected +1.78% to 1,388 bps.

Market tomorrow. We assume that growth was provided by the technical correction and given trend is of short term nature. Considering the fact that the positive stats from e labor ministry of the US enforces the strong data of the current week, we expect that next week the foreign capital continues outflowing next week due to pressure of the factor of QE getting cut.


Bonds

Market today. Despite the increasing chances of QE getting cut in December, the domestic market closed the week will modest adding. BFL added about 5-10 bps, yield reduced 1-3 bps. in the corporate segment buying went on the loans Gazprom neft-12, Alrosa MB-1, VK-Invest-3. The Eurobonds had a calm day and the labor market stats did not cause any specific reaction. Buying went at the long end of the curve within the sovereign segment. Russia-42 added 40 bps to 98.87% of the nominal,Russia-43 - 50 bps to 100.22% of the nominal.

Market tomorrow. Next week we assume that the trend to growth might be continued on the bonds' yields. The recent stats from US indicated high chances of QE volume cutting, which is to pressure the debt markets.