Morning Summary from FC: Markets and Economy - November 11.
The Russian market started the main session on a rebound after falling the previous day. But behind the external recovery are expensive oil, a budget deficit and new risks for the technology sector.
The market recovers losses.
By 09:30 Moscow time, the Moscow Stock Exchange index added 0.37%, to 2453.36 points, the RTS - the same, to 936.25. The turnover amounted to 7.6 billion rubles - about 40% below the monthly average. The growth leaders were Polyus (+2%), TGK-1 (+3.31%) and TGK-14 (+2.05%); Among the outsiders are Europlan (-1.63%), M.Video (-0.95%) and KAMAZ (-0.94%). The day before, the Moscow Stock Exchange Index lost 1.17%.
Oil is above $92 again.
Brent recovered to $92.5 a barrel after falling below $90. The quotes were supported by new incidents with ships in the Strait of Hormuz: risks to shipping complicate the prospects for an agreement between the US and Iran. The official central bank rates as of November 11: dollar - 82.55 rubles, euro - 92.40, yuan - 12.38.
Budget: Oil and gas revenues decreased.
The federal budget deficit in January-October reached 5.23 trillion rubles. Oil and gas revenues fell by 14.1% year-on-year, to 6.44 trillion rubles.
Without oil and gas increased by 19.1%, to 26.73 trillion, expenses - by 13.4%, to 38.41 trillion rubles. In October the deficit amounted to 48 billion rubles after the September surplus of 609 billion.
Ost-Luga is under attack.
After the UAV attack, a fire occurred in the port of Ost-Luga, three people were injured and a substation was extinguished. The governor reported about 150 drones downed; Reuters could not independently verify the claim. The port is an important center for the export of oil, oil products and grain.
Inflation in the US complicated the Fed's plans.
Consumer prices in the US in October rose by 0.4% for the month, compared to a forecast of 0.3%. Core inflation also turned out to be higher than expected: 0.3% compared to 0.2%.
The data raised concerns that the Fed would not ease policy as quickly as the market had hoped.