Market Buzz: Shaky trading on lower oil and moderate growth data
Analysts expect Russian stocks to fluctuate, reacting to data from US and Europe as there are no strong domestic drivers
“Quite possibly that volatility on the Russian market will remain until the beginning of May, when the accounting period in the US is over,” says Alexander Potavin from ItInvest-Prospect.
Russian stock markets dropped Monday on the back of falling oil prices. The MICEX lost 1.66% and the RTS gave up 1.56%.
The US stocks advanced on Monday supported by a larger-than-expected 0.8% growth in US. March retail sales and better-than-expected results of Citigroup Inc., though it reported 1.6% fell in revenue. The Dow Jones added 0.6%, while the S&P 500 was down 0.1%. Shares of Apple fell 4.2%, showing the biggest drop since October.
Most European markets closed in positive territory Monday amid positive news on US retail sales. Meanwhile Spanish shares were under pressure as government bond yields reached the psychologically key level of 6%. The Stoxx Europe 600 rose 0.3. The data on inflation rate in the eurozone and in the UK will be issued later on Tuesday.
Asian stock markets traded mostly higher on Tuesday excepted Chinese shares, which dropped amid fresh concerns about economic growth. Hong Kong’s Hang Seng shed 0.3%, while the Shanghai Composite declined 0.5%. South Korean Kospi lost 0.2%, Japan’s Nikkei Stock advanced 0.2%, and Australia’s S&P/ASX 200 traded 0.1% higher.