The Russian stock market grew by 1.8-2.1%

The Russian stock market grew by 1.8-2.1%

The Russian stock market grew by 1.8-2.1%

The stock market of the Russian Federation ended trading with confident growth following the global markets due to signs of progress in the development of a vaccine against the coronavirus COVID-19, as well as against the background of rising oil prices. The Moscow Exchange index exceeded 2980 points.

On Tuesday, Asia showed mixed dynamics in stock indices (Japan's Nikkei 225 sank 0.4%, China's Shanghai Composite rose 0.5%, and Hong Kong's Hang Seng added 0.4%). Meanwhile, Europe was trading in positive territory and stock America began trading on an upward trend against the background of statistics from China.

Economic activity in China intensified in August amid stimulus measures taken by the country's authorities to support the economy amid the coronavirus pandemic. Retail sales in the PRC last month increased by 0.5% on an annualized basis against forecasts of growth of 0.1%. The rise in retail sales was recorded for the first time in 2020, falling 1.1% in July.

Industrial production in China in August increased for the fifth month in a row – by 5.6% in annual terms. Growth rates accelerated from 4.8% in July and were the highest since December 2019. Analysts on average had expected growth of 5.2%.

Oil moved to growth, despite the deterioration in demand forecasts of the IEA and OPEC. According to Trading Economics, the market is supported by the weakening US dollar and fears of disruptions in oil supplies from the Gulf of Mexico due to the approaching hurricane Sally. The U.S. National Hurricane Warning Service expects the hurricane to hit off the southeast coast of Louisina on Tuesday.

As of Monday, about 21.4% of oil production in the Gulf of Mexico had been shut down, according to estimates from the US Bureau of Safety and Environmental Affairs, cited by MarketWatch.

At the same time, the International Energy Agency (IEA) downgraded the forecast of a decline in oil demand this year from 8.1 million barrels per day to 8.4 million bpd.

The Moscow Exchange index rose by 1.78% – up to 2980.58 points.

The RTS index increased by 2.05% and amounted to 1253.68 points.

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