Global wariness, fall of crude may pull Russian stocks down

MOSCOW, Jun 13 (PRIME) -- The Russian stock market may edge down on Thursday in light of rising investor concerns over global trade wars and a recent fall in crude prices, analysts said.

“We expect the MOEX Russia Index to open some 0.1–0.3% lower within a 2,740–2,750 range. In the first minutes of the trading session, the benchmark is likely to mirror the recent considerable fall in crude prices,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

On Wednesday, the Brent oil price dropped to around U.S. $60 per barrel on expectations of a rise in U.S. inventories.

Olma senior analyst Anton Startsev said that the RTS index’s upward dynamics are also likely to pause at the beginning of the day amid rising wariness over outlooks of a trade war between the U.S. and China. Demand for “safety” assets including U.S. treasuries is rising.

Promsvyazbank analyst Mikhail Poddubsky said that the Russian market may be additionally pressured by U.S. President Donald Trump’s statement that his administration is considering sanctions against Russia’s Nord Stream-2 gas pipeline project.

Investors may also be interested in results of meetings between President Vladimir Putin and Indian Prime Minister Narendra Modi, and between Energy Minister Alexander Novak and European Commission Vice President for Energy Union Maros Sefcovic.

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