A Global change in sentiment is underway ... Maybe
The Micex Index (INDEXCF) added 0.6 percent to 1,372.17 rubles by 11:24 a.m. in Moscow after an 0.8 percent retreat last month. OAO Mechel, Russia’s biggest producer of coal for steelmakers, climbed 1.3 percent to 98.10 rubles, the most since Aug. 26. Oil producer OAO Bashneft rose 1.8 percent to 1,929.70 rubles after UBS AG raised the stock to buy, citing its earnings outlook.
China’s economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August, an official report showed yesterday. The Micex gauge fell 2 percent last week after Russia cut its 2013 economic-growth forecast for the second time this year. The country receives about half of its budget revenue from the oil and natural-gas industries.
“Russian commodity companies will benefit if Chinese growth recovers,” Oleg Popov, who manages $1 billion of securities for Allianz Investments, the asset-management arm of Europe’s biggest insurer, said by phone from Moscow. “This is especially positive news for metal companies.”