Russian stocks can fall as US–China trade war continues

MOSCOW, Jun 28 (PRIME) -- The Russian stock market will likely open lower on Thursday on the back of global concerns about a continuing trade conflict between the U.S. and China, analysts said.

“The external background before the start of the Russian trading session can be characterized as mixed. At the same time, a significant decline of futures for the MOEX Russia and RTS indices create conditions for a moderately negative start of the trade in Russia,” Vitaly Manzhos, senior risk manager at investment company Nord Capital, said.

Anton Startsev, a senior analyst at investment company Olma, said that global oil prices remain high enough to support the Russian blue chips.

Confirmation of a forthcoming meeting between the Russian and U.S. presidents adds to the optimism, Startsev said.

But he also said that continuing risks stemming from the U.S.–China trade war exert pressure on demand on global markets.

According to Manzhos, the MOEX Russia Index can fall by about 0.3% to 2,250 at the opening. The levels of 2,240 and 2,230 are support and 2,260 and 2,270 are resistance. Startsev said that growth of RTS can halt on Thursday.

End