Russian stock market may open with small decline
MOSCOW, Jul 19 (PRIME) -- The Russian stock market may open with a small decrease on Tuesday amid the mixed external background in expectation of an eventful day in terms of statistics and corporate news, analysts said.
“The Russian market will start the day in a neutral way or with a small decrease,” Otkritie Research leading analyst Andrei Kochetkov said.
The external background before the start of trade in Russia is negative, he said, adding that the Asian markets are mainly falling on the back of issues in the Chinese economy, while oil prices have stabilized after growth on Monday. The ruble is able to continue strengthening in light of coming tax payments.
Investors are waiting for the releases of monetary policy decisions by the European Central Bank (ECB) and the Bank of Japan, Kochetkov also said.
According to Promsvyazbank senior analyst Vladimir Solovyev, the situation on the external markets looks favorable, with the key Asian floors showing mixed dynamics and the futures on the main U.S. and E.U. indices trading in the green.
PSB Bank expert Yekaterina Krylova said that oil is likely to slow down its rebound and consolidate around U.S. $105 per barrel.
“Despite yesterday’s rebound we continue to view the risks to the global economy as substantial,” Krylova said, adding that this factor “will restrain optimism on the oil market.”
The news flow will include the releases of operating results for April–June by steel producer Magnitogorsk Iron and Steel Works (MMK) and children goods retailer Detsky Mir.
The statistics news flow will include inflation data in the E.U. and real estate data in the U.S. American Petroleum Institute (API) will publish statistics on oil reserves.
End