Russian stocks can decrease as N Korea tests nuclear bomb
MOSCOW, Sep 4 (PRIME) -- The Russian stock market will likely open with a negative gap on Monday as investors’ reaction to nuclear bomb tests in North Korea has mostly been strongly negative, analysts said.
“A suspension of growth of the RTS index is possible today at the start of the day on the back of strengthening of geopolitical risks: last week we knew about thermonuclear bomb tests in North Korea. A response by the U.S. can include extension of sanctions,” Anton Startsev, a leading analyst at investment company Olma, said.
He said that growth of investors’ interest to gold signifies that interest to emerging markets is decreasing.
Bogdan Zvarich, a senior analyst at Freedom Finance, said that the situation on the fuel market is negative with the Brent oil blend receding to U.S. $52.5 per barrel.
He said that the MICEX can fall to the 2,000 level and find a support zone there.
Investors will pay attention to macroeconomic statistics in Europe later in the day. The producers’ price index and the investors’ confidence index can influence the Russian market to a significant extent, Zvarich said.
Startsev said that the U.S. market will be closed for Labor Day, which is why non-resident activity on the Russian market can be lower than usual.
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