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The first few minutes of trade saw the Moscow Interbank Currency Exchange (MICEX) grow by 0.2 per cent to 1,400.53 points, while the Russian Trading System (RTS) also climbed 0.2 per cent to 1,357.19 points.
Ivan Tchakarov, Chief Russia/CIS Economist at Renaissance Capital, says global economic health reflects directly on Russia to the extent that the Russian market is a high-beta one.
“European and Russian stocks are benefiting from the fact that Chinese GDP did not disappoint,” Tchakarov told The BRICS Post.
MICEX grew by 0.56 per cent to 1,406.06 points and RTS by 0.62 per cent to 1,357.17 points as of 10.40 am Moscow time.
China’s GDP data for the second quarter of the year matched forecasts and expectations – increasing the price of oil.
Brent crude oil August futures went up by 0.05 per cent reaching $108.86 per barrel.
“What is really driving this optimism is the fact that the Chinese economy can still manage 7.5 per cent growth – this is viewed by the market quite positively. Although, it is quite trendy these days to be gloomy on China,” Tchakarov said.
Despite the Chinese economy slowing down from 7.7 per cent in the first quarter, retail data in June encouraged investors that GDP slowdown will be compensated by the growth of internal demand.
The ruble remained unchanged from Friday’s close against the US dollar at 32.64 rubles to the dollar.
Daria Chernyshova in Moscow, Russia for The BRICS POST, with inputs from Agencies