Russian stocks may fall on investor concerns over US trade wars
MOSCOW, Mar 7 (PRIME) -- Russian stocks are likely to fall on Wednesday as investor concerns over possible trade wars with the U.S. are mounting, while oil prices contract, analysts said.
УToday a downward correction of the RTS index is possible on the background of a global slump in demand for risk. Investors are again concerned with the prospect of trade wars after an economic advisor of the U.S. president, who opposed high import duties on steel and aluminum, has resigned and the White House stated its intent to improve import regulations for China,Ф Anton Startsev, a senior analyst at investment company Olma, said.
The background for the Russian stock market is negative as the U.S. stock index futures are losing more than 1% and the Asian floors are in the red zone. The Brent oil price lost 0.491% to U.S. $65.22 per barrel as of 9.05 a.m. Moscow time, according to the ICE exchange.
УWe expect a negative start of trade in Russia with a fall of about 0.5% of the MOEX Russia Index close to a range of 2,290Ц2,295. The levels of 2,290 and 2,280 will become the closest support, while 2,310 and 2,320 will act as resistance. In the first minutes of trade the local market is likely to price in the noticeable morning worsening of the external background,Ф Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said.
Changes in prices of oil futures will remain the key driver for players of the local market, this is why the release of weekly statistics on the U.S. oil and oil product reserve will become one of the most important statistics releases, Manzhos said.