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Reports Russia

Russian stock market daily evening report (January 14, 2014, Tuesday)

January 14, 2014, Tuesday, 17:05 GMT | 13:05 EST | 22:35 IST | 01:05 SGT
Contributed by Veles Capital


Stocks
 
Market today. Russian market opened negatively at the back of drop at the global capital markets. Exchange grounds of America closed negatively Monday. ATP exchange indices are dropping Tuesday. Futures for US indices are negative. Oil lost in price after Iran agreed to cut its nuclear program in exchange for easing a share of restrictions. As of 10:10 MSK, MICEX index lost 1.11% to 1 460.8 points, RTS index reduced 1.3% to 1 384 points. February futures for Brent added in price 0.23% to 107 USD per barrel at ICE Futures. Price of the futures for WTI for February added at NYMEX 0.43% to 92.2 USD per barrel.
 
By 4:00 pm the stock of Magnit corrected (+1.5%) after a three day drop at the back of weak results for December 2013.
 
At 5:30 MSK, retail sale in US for December 2013 grew vs the previous month by 0.2%, upping by 0.1% was expected. Growth of the retail sale in US for December turned out to be better than forecasted – 0.2% vs forecast 0.1%. Growth of sale supported improvement of the situation in the economy and employment in particular. Despite the fact that data indicates a positive impulse in the economy, the markets likely react neutrally as risks of a new cut of QE currently overweight positive of the positive stats. Price index for imported goods and services in US for December 2013 did not change vs November and reduced 1.3% in annual terms.
 
Market tomorrow. Until the end of the day the investors will probably focus on the scheduled statements of two members of the committee “forward guidance”. At 9:45 pm MSK we expect statement by the head of FRB of Philadelphia Charles Plosser and at 10:20 pm MSK – by the head of FRB of Dallas – Richard Fisher.
 
 
Bonds
 
Market today. Western grounds were shivering, however, that did not reflect on the dynamics of the Russian debt market. The domestic market once again traded inactively. BFL traded near their former levels. In the corporate segment, buying prevailed in the issues Bashneft-7, FNC-11, Megafon-5, and VTB MB-21. Eurobonds were also wondering around. Russia-42 reduced 12 bps to 103.26% of the nominal, Russia-42 remained at the level of 100.84% of the nominal.
 
Market tomorrow. Domestic market will be referring to the results of this year’s first BFL auction. Eurobonds are still following the dynamics of UST, which would be referring to the evening statements of Plosser and Fisher.