Wednesday, June 10, 2009

VTB 24 (JSC): Crude oil above $ 70 a barrel is likely to allow our market away from the level of 1100 points on the MICEX Index

Oil above $ 70 a barrel is likely to allow our market away from the level of 1100 points on the MICEX Index

Quotations oil futures broke the $ 70 mark. Fact overcome another round of oil price point might be enough to ensure that the Russian stock market began to gradually withdraw from the stupor of recent days and was able, finally, to move away from the level of 1100 points on the MICEX Index. Moreover, the growth of friendly Asian stock indicators, plus futures on the S & P500, after yesterday's positive closing encouraging.

Renewed weakening of the dollar is providing substantial support to the commodity markets, and therefore shares the extractive companies.

An additional factor contributing to the revitalization of the players in the stock market now will yield significant macroeconomic data (balance of trade U.S. 16.30 Moscow time) and the publication of the Beige Book "The Fed (22.00 Moscow time).

The latter represents, in our view, a risk for the stock markets, because the situation could be repeated with the publication of the protocols last meeting FOMC - in their assessment of the state of the American economy has been less encouraging, as the investors wanted.

Best regards,

Stanislav Kleshchev

VTB 24 (JSC)

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