The growth of the RTS index, as well as of the entire Russian stock market as a whole, is associated with rising gas prices in connection with the energy crisis in the world, as well as with the strengthening of the ruble and the fall in the value of the US dollar in connection with the policy of the Federal Reserve. Financial analyst and trader Artem Zvyozdin told Izvestia about this on Tuesday, October 19.
Earlier on the same day, the dollar-denominated RTS index rose above 1900 points on the Moscow Exchange, having renewed its maximum since the beginning of August 2011 amid high energy prices and the strengthening of the ruble. The maximum indicator was recorded at the level of 1901.17 points.
By 15:37 Moscow time, the RTS index fell by 1.14%, to 1,898.35 points.
“Of course, the market will continue to grow until the EU energy crisis is resolved. What marks will the index reach? [РТС] at the same time, it is problematic to say, but in general, we can expect a mark of 2000 points, where a correction may begin due to an excessively overheated market, “Zvezdin said.
At the same time, according to him, it should be understood that, despite the energy crisis in the European Union, the overall situation can be resolved rather quickly “not in favor of Russia.” High prices for raw materials attract investment in the raw materials sector, which means that in the long term, the Russian Federation may see “a systematic decline in hydrocarbon prices,” the analyst said.
Earlier on Tuesday, the price of gas in Europe during trading on London ICE Exchange again rose above $ 1120 per 1 thousand cubic meters. m. The high volatility of prices for blue fuel in Europe is associated, among other things, with the low occupancy of gas storage facilities before the coming winter.
On October 6, the gas price in Europe at the opening reached an all-time high, amounting to $ 1,900 per 1,000 cubic meters. m, but later dropped. The day before, Russian President Vladimir Putin said that due to speculation on climate problems and a reduction in investment in the extractive industry, hysteria and confusion had arisen in European energy markets. He added that the transition to alternative energy sources should be smooth.
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