Drukāt |

Norvik Research 22.12.2016

22/12/2016 15:55

Global developments

Global stock markets are lower following declines in commodity prices. S&P 500 futures are 0.1% lower after the index lost 0.2% yesterday. Euro Stoxx 600 is 0.3% lower, Nikkei 225 is down 0.2%. The CSI 300 declined 0.1% today. The US dollar index is 0.1% lower. 10-year US Treasury yields are up 2 bps today at 2.55%. Gold is down 0.1%. China’s zinc output rose 7.7% YoY to a fresh high, reflecting higher demand.

Oil prices (Brent) are lower by 0.5% at $54.2/bbl. Iraq’s oil minister said at a meeting of the Organisation of Arab Petroleum Exporting Countries that most international oil companies working in the country (including the Kurdish region) have agreed to participate in implementation of the OPEC output cuts accord.

Russia and CIS area developments and market colour

Weekly inflation in Russia came out at 0.1% in line with the previous week’s reading. According to our estimates, in yearly terms, inflation declined from 5.6% YoY in the previous week to 5.5% YoY at present.

Russia’s central bank reported further declines in inflation expectations. According to the CBR’s estimates, expected inflation decreased from 5.5-5.6% in November to 5.2% in December. The tendency of inflation expectations to lag behind actual inflation performance is among the key factors behind the CBR’s cautious policy stance.

The rouble is 0.4% stronger today at 60.9 against the dollar. OFZ yields are 1-4 bps tighter today. Russia and Kazakhstan longer-term sovereign Eurobond yields are 1-2 and 6-7 bps lower today respectively. Azerbaijan-24 and Armenia-25 are 2 bps lower respectively. Ukraine sovereign bonds yields are 6-10 bps lower.

Corporate news

Vnesheconombank (VEB) will receive budget subsidies for RUB 150bn. VEB’s supervisory council approved a strategy for the next 5 years. The strategy implies RUB 150bn of subsidies in 2017 and no positive net income. VEB will also continue to use the National Wellbeing Fund’s resources (over RUB 300bn deposited at 0.25% p.a. for a 5-years period). In 2016 VEB received the same amount of money from government (RUB 150bn) and reported a net loss of RUB 153.8bn.

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.

Pēdējās ziņas