Russian stocks can fall on US Secretary of State replacement

MOSCOW, Mar 14 (PRIME) -- The Russian stock market will likely open with a downward gap on Wednesday, following a negative trend of foreign markets after replacement of the U.S. Secretary of State, analysts said.

“We expect that the Russian stock market will open with an about 0.3% decrease today, reflecting yesterday’s external negative news. The trade dynamics will be volatile later, shares will react to oil price changes, and investors may quit securities ahead of the presidential elections,” Alexei Antonov, an analyst at Alor Broker, said.

Global markets are reacting negatively to a decision by U.S. President Donald Trump to replace State Secretary Rex Tillerson with CIA Director Mike Pompeo, Antonov said. He said that a diplomatic scandal after the poisoning of former Russian spy Sergei Skripal and his daughter will also pressurize Russian assets, Antonov said.

He said that the Russian market will see an about 0.3% downward gap at the session start.

According to Sergei Kozlovsky, head of the research department of forex broker Grand Capital, later on Wednesday, investors will pay attention to release of China’s industrial output, Germany’s inflation and euro zone labor market figures; U.S. producer price index (PPI), weekly retail sales and reserves of oil and oil products.

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