MOSCOW, Aug 26 (PRIME) -- The Russian stock market will likely decrease on Monday morning, as investors run for safety on escalation of the U.S.–China trade conflict, analysts said.
“A moderately negative external background is formed at the start of the new week. The U.S.–China trade relations deteriorated in the last several days literally, threatening own economies and global markets,” Solid brokerage said.
China slapped duties on about U.S. $75 billion U.S. goods in retaliation for earlier U.S. steps. U.S. President Donald Trump was dismayed and promised to raise the pressure. The key Asian indices lost at the start of Monday, and the European and U.S. indices will most probably follow the trend, the analysts said.
The trade conflict will also likely drag down oil prices, probably below $57 per barrel of Brent, on fears for future demand.
Besides, U.S. Federal Reserve System (Fed) Chairman Jerome Powell said that trade risks had increased and the global economy’s growth had decelerated, which, according to Promsvyazbank analyst Mikhail Poddubsky, also hurt the global markets.
Alexander Osin, head of department for operations on the Russian stock market at investment company Freedom Finance, said that the MOEX Russia Index can fall by 0.5% at opening to 2,640–2,675.
Solid said that a period of reports of Russian companies for January–June later this week can support the Russian market to a certain extent.
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