Russian stocks can fall as US sets imports duties on Chinese goods

MOSCOW, Mar 23 (PRIME) -- The Russian stock market will likely edge down at opening on Friday on the back of a global markets’ volatility following introduction of imports duties on Chinese goods by the U.S., analysts said.

“Whereas fuel prices are high enough to support demand in the oil and gas sector, flight for safety has emerged on the markets in general, a growth of volatility of the Western stock market indices is accompanied by rising bids to buy the U.S. state debt,” Anton Startsev, a leading analyst at investment company Olma, said.

“Deterioration of the global stock market situation is due to international trade processes that hurt the global economy: U.S. President Donald Trump has ordered to introduce import duties on goods from China, after which the Chinese government promised to retaliate with duties on U.S. imports.”

Vitaly Manzhos, senior risk manager at investment company Nord Capital, said that the MOEX Russia Index will likely open with insignificant changes close to 2,285. The closest support levels will be 2,280 and 2,270 and resistance at 2,300 and 2,310.

The Russian central bank will decide on possible key rate changes at 1:30 p.m., Moscow time, which, according to Startsev, will be the main event for the market.

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