Market Buzz: Investors ‘wait and see’ on opposition actions
6 Mar, 2012 05:29
Russian trades are expected to prove sensitive to the opposition demonstrations after the presidential elections, as investors remain concerned over possible tensions.
“In general the situation on the markets remains uncertain,” says Pavel Emelyantsev from Investcafe. “I suppose in the next weeks objectors won’t feel like coming into the streets after two or three demonstrations and it will calm investors and contribute to buying.”Russian markets closed in the black on Monday, with the MICEX ending up 1.1% and the RTS up 1.51% after the presidential election resulted in Vladimir Putin’s victory. Energy stocks were among the gainers, including IDGC Holding (+5.1%), IDGC of Center and Volga Region (+2.1%) and E.ON Russia (+3%).European bourses closed lower Monday, with banks and miners among the top decliners as data showed eurozone business activity contracted more than expected in February and China cut its economic growth target. The Pan-European Euro Stoxx 50 shed 0.6% while France’s CAC 40 lost 0.39% and Germany’s DAX fell 0.8%. US stock markets declined on Monday as data was issued showing the employment index slipped and consumer price index rose. Investors were also concerned with China’s lower GDP target and the European PMI decline in February. The Dow Jones lost 0.1% and the S&P 500 declined 0.4%, while the Nasdaq Composite shed 0.9%.Asian shares fell Tuesday after global markets ended lower amid concern on growth outlook. Hong Kong’s Hang Seng lost 1.4%, the Shanghai Composite fell 1.3%, and Japan’s Nikkei Stock Average declined 0.4% while South Korea’s Kospi fell 1%.