Russian stocks can fall on escalation of US–China trade spat

MOSCOW, Jul 11 (PRIME) -- The Russian stock market will likely open lower on Wednesday hit by escalation of the U.S.–China trade conflict, analysts said.

“Deterioration of the global markets mood and a local correction of oil quotations can trigger predominantly bearish trends on the Russian stock market during today’s trade,” Mikhail Poddubsky, chief analyst at Promsvyazbank, said.

The U.S. presidential administration published a U.S. $200 billion list of Chinese goods, on which new import duties will be slapped, and China promised retaliation. Anton Startsev, senior analyst at Olma, said that these events pressurized the Asian markets and the U.S. stock market futures, and can hurt global demand.

Poddubsky said that 2,340–2,350 is the closest support level for the MOEX Russia Index. Startsev said that RTS can consolidate after reaching 1,200.

Alexei Korenev, Finam analyst, said that a monthly report by OPEC, U.S. producers’ price index and crude reserves report by the Energy Department can influence the Russian market dynamics later on Wednesday.

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