Russian stocks can fall on US–China conflict, oil price fall
MOSCOW, May 23 (PRIME) -- The Russian stock market will likely open with a downward gap on Thursday because of an increasing pessimism over the U.S.–China conflict and falling oil prices, analysts said.
“The global market participants are revising towards more alarming their estimates of a possibility of escalation of the trade conflict between the U.S. and China on the back of continuation of a rhetoric which does not favor search for a compromise,” According to Olma senior analyst Anton Startsev.
According to Startsev, sales prevail on the Asian trading floors which can pressurize all developing markets.
A sudden growth of crude reserves in the U.S. is an additional factor of pressure on oil futures, Startsev said.
Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that U.S. stock market index futures fell by 0.4–0.6%, Brent decreased by 0.9%, gold futures remained neutral. Shanghai Composite fell 0.9% and Japan’s Nikkei lost 0.8%.
Manzhos expects the MOEX Russia Index to open with a moderate decrease of 0.3–0.5% at about 2,625–2,630. The levels of 2,620 and 2,610 will act as the support and the levels of 2,640–2,650 as the resistance ones. Startsev said that the RTS index will stop its upward trend.
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