Norvik Research 10.07.2017

10/07/2017 19:18

Global developments

Global stocks are rising on expectations of further global expansion supported by strong labour data despite political uncertainty. Change in nonfarm payrolls in June came out at 222K significantly higher than consensus forecast of 178K (May reading was revised upwards from 138K to 152K). Janet Yellen’s testimony before Congress is in focus this week as investors are waiting for guidance on when the Fed will start reducing its balance sheet. The dollar is 0.1% stronger today. Futures on S&P 500 are marginally higher after the index added 0.6% on Friday. Euro Stoxx 600 is up 0.2% today. Nikkei 225 is 0.8% higher. US 10Y yields are 1 bp lower at 2.38%. Gold is down 0.2%.

Oil prices are down amid concerns on effectiveness of OPEC’s oil production curbs. Libya and Nigeria together increased their production by 0.44 mn bbl/day in May and June. Baker Hughes rotary rigs number rose by 7 to 763 in the previous week. Brent prices are marginally lower today at $46.7/bbl after falling 3.0% on Friday.

Russia and CIS area developments and market colour

The meeting between Vladimir Putin and Donald Trump lasted beyond 2 hours instead of less than an hour initially planned. The two sides talked about counter-terrorism, cyber-crime, election tampering, Syria and Ukraine and announced a ceasefire in Southern Syria. Nevertheless, there was no significant breakthrough and investors are waiting for a vote in the Congress on Russian sanctions bill.

The rouble is flat against the dollar at 60.4. OFZ yields are 2-5 bps tighter today. Russia’s and Kazakhstan’s longer term sovereign yields are 6-7 bps and 4-5 bps tighter respectively.

For more information on the research, please click here.

Norvik Banka Research
+44 207 259 8854

Brokerage department
+371 6701 1561

This report is prepared by Norvik Banka UK Limited, of 46-48 Grosvenor Gardens, London, SW1W 0EB, United Kingdom (hereinafter referred to as the Company) as a marketing communication for information purposes only. Neither the information nor any opinion contained in this report (notwithstanding the source) is intended to be, or should be construed as an offer, a recommendation, an advice or an invitation to make an offer, to buy or sell any financial instrument. Information contained in this report constitutes neither investment nor tax advice and it does not take into account the specific investment objectives, risk appetite and financial situation of anyone who may receive this report. Investors should seek their own advice regarding the appropriateness of investing in any financial instrument discussed in this report and carefully evaluate the risks and eventual losses that are related to the investment services and its compliance with their investment goals.
Investors should note that any income derived from investments in financial instruments may fluctuate and that the price or value of securities and investments may rise or fall. Accordingly, investors may lose their investment or receive back less than originally invested. Past performance and income is not a guide to future performance and income. Foreign currency exchange rates may adversely affect the value, price or income of any security or related investment mentioned in this report. Investing in the Russian or CIS economies and securities involves a high degree of risk and requires appropriate knowledge and experience.
The information contained in this report have been obtained from such public sources what are believed to be reliable, but no representation or warranty is made by the Company with regard to accuracy. Therefore the information contained herein is subject to change without prior notice.
This report should not be viewed as the only source of information, and neither the Company, nor the companies within the NORVIK group and/or any affiliates or employees thereof accept any responsibility or liability whatsoever for any direct or indirect damage arising out of or in any way connected with the use of information contained herein, nor for its authenticity.
This report may not be distributed, copied, reproduced or changed without prior written consent from the Company. Further information, which for the avoidance of doubt cannot be treated as the recommendations and/or advice either, may be obtained from the Company upon request.
This report has not been prepared on the basis of the requirements of regulatory provisions promoting independence of investment research and is not subject to the prohibition from making transactions before disseminating investment research.
Norvik Banka Research is a Trading Name of Norvik Banka UK Ltd, which is Authorised and Regulated by the Financial Conduct Authority, FRN: 681329. Registered in England and Wales with number 08940522. Registered Office: 46/48 Grosvenor Gardens 1st Floor, London, SW1W 0EB.

The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful.

This email has been scanned for viruses and malware, and may have been automatically archived by Mimecast Ltd, an innovator in Software as a Service (SaaS) for business. Providing a safer and more useful place for your human generated data. Specializing in; Security, archiving and compliance. To find out more Click Here.

Latest news