Oil price rally pushes Moscow Stock Exchange to record high
Hope for an economic recovery is causing the oil price to rise and not only giving wings to the commodity-rich Russian stock exchange. The digital currency Bitcoin, on the other hand, is falling well below its record set at the weekend.
Dhe latest price rally for crude oil, an important export commodity for Russia, has given the Moscow stock exchange a boost. The leading index rose by 1.6 percent to a record high of 3596 points. The country’s currency is also in demand. According to stockbrokers, it is receiving additional tailwind from the approaching tax deadline for companies. In turn, the dollar fell to a two and a half month low of 72.95 rubles. At 87.05 rubles, the euro is as cheap as it was last year more than a year ago.
The background to the oil price rally is the Chinese economy. Because in anticipation of increasing demand from China, investors stock up on crude oil. The Brent variety from the North Sea rose by 0.7 percent to 69.71 dollars per barrel. Industrial production in the world’s second largest economy accelerated its rate of growth at the start of the year.
In anticipation of a strong recovery in the global economy from the coronavirus pandemic, investors are also entering the European stock markets. The Dax took course on Monday to its record high of the past week and rose by 0.2 percent to 14,538 points. The Euro Stoxx 50 gained 0.6 percent at times and at 3857 was as high as it was last around a year ago.
“Investors who hope for positive economic data these days will not be disappointed,” said analyst Jochen Stanzl from online broker CMC Markets. “Both the data on industrial production and retail in China have once again exceeded the already optimistic expectations.”
In addition, the adoption of the almost two trillion dollar corona state aid in the United States is fueling hope for a normalization of the economy there, said Neil Wilson, chief analyst of the online broker Markets.com. “Even in Europe, with all its vaccine problems, there is growing confidence that it will be able to withstand the virus much better than last year.”
Bond market eases, Bitcoin falls
The inflation fears would be pushed into the background, but have not yet vanished, warned market analyst Milan Cutkovic from the brokerage house Axi. For this reason, stockbrokers eagerly awaited the results of the monetary policy deliberations of the US Federal Reserve on Wednesday. “The Fed must clearly signal that it will react if interest rates rise rapidly, otherwise further turbulence in the bond markets is only a matter of time.”
At the beginning of the week, however, the situation on the bond markets eased. The yields on trend-setting ten-year bonds from the United States and Germany fell to plus 1.616 and minus 0.323 percent, respectively.
Bitcoin, on the other hand, went down. The oldest and most important cyber currency fell to $ 55,333 after hitting a record high of 61,780 over the weekend. But these are only temporary profit-taking, said analyst Timo Emden from Emden Research. The money glut from the major central banks is driving more and more investors into alternative investments. “There are further price gains in the air.”