Stock markets waiting for the outcome of the elections in the U.S. Congress, the analyst said

© AP Photo / Richard DrewТрейдер on the new York stock exchange. Archival photoStock markets waiting for the outcome of the elections in the U.S. Congress, the analyst said© AP Photo / Richard Drew

The introduction of the next round of US sanctions against Iran should not cause strong movements in world stock markets, as already accounted for them, markets are now more important than the outcome of the elections in the us Congress, analyst CC «Finam» Sergey Drozdov.

The President of the United States Donald trump announced in may that Washington is out of agreement with Iran on its nuclear program. He also reported the return of all sanctions against Iran including secondary, that is, against other countries doing business with Iran. Once again, the U.S. has enacted on August 7 some of the sanctions against Iran. The more significant sanctions that would cover oil exports, are expected on 5 November. Washington has said it aims to bring Iranian oil exports down to zero and urged its customers to abandon such purchases.

«The whole issue with Iran has already been priced in by the rise of oil prices Brent crude to $ 86. Now the main moment of the elections to the us Congress on 6 November, before which we saw on 1 and 2 November a strong decline in oil prices. I think after the elections in Congress, oil prices will slowly start to recover. With the introduction of sanctions of some strong surges in oil and the stock market should not be», — said RIA Novosti analyst.

While Drozdov notice that world stock markets are now gradually recovering after the decline following the American indexes, which fell by about 10% in October. «However, before the elections in the U.S. Congress will have some volatility. Until the end of the year, investors will be watching the outcome of the election, which party will take majority in Congress. However, until the end of the year, us markets have good prospects for growth, as are good reports of the companies and continue the stock repurchase program,» said he.

At the same time on the Russian exchange, according to experts, more strongly affect the possible adoption of the second package of sanctions on the «case Skrypalia». «If to speak about Russian market, then we comes complete with rasborella oil prices and Western platforms, so it has its own game. The main risk for our market will be the discussion of the second sanctions package in connection with Kripalani, which the Americans will be discussed after the elections. In General, the starting point for the world and domestic markets will be the outcome of the us mid-term elections in the U.S. Congress», — concluded the analyst.

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