Russian stocks can fall as US Trump scares investors with threats

MOSCOW, Aug 23 (PRIME) -- The Russian stock market will likely open with a downward gap on Wednesday because statements by U.S. President Donald Trump have discouraged investors from purchases, analysts said.

“A certain downward correction is possible today at the start of the trading session. The U.S. president made several remarks which together cooled the activity of investors on global financial markets due to strengthening of economic uncertainty,” Olma senior analyst Anton Startsev said.

The analyst said he was referring to claims that Trump can suspend the activities of the government if a wall separating the U.S. from Mexico is not financed and that the U.S. can quit the North American Free Trade Agreement (NAFTA).

Finam analyst Sergei Drozdov said that the key resistance level of the MICEX is 1,960 and the support level is 1,920. The RTS can reach 1,050 if the positive dynamics continues.

Sberbank and Mechel are scheduled to publish their January–June financial reports under International Financial Reporting Standards (IFRS), which according to Startsev, can become the main corporate events of Wednesday.

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