MOSCOW, Jul 18 (PRIME) -- Russian stocks are likely to contract at the start of the session on Thursday as investors are not pleased with corporate reports from all around the world, while a weak dynamics of oil prices reflects concerns of traders over the current situation in the sector and its future, analysts said.
“The RTS Index may experience a deeper downward correction at the beginning of the trade session today under a pressure of the external background. Traders are keeping an eye on corporate reports, and they are not sure that financial figures of companies can justify further growth of stock markets,” Olma’s senior analyst Anton Startsev said.
Contraction of operating profit of Japan’s Canon and an unexpected reduction of Netflix subscribers in the U.S. caused a negative reaction of market players all around the world, Startsev said.
Vadim Kravchuk, analyst at investment company Solid, said that the background for the Russian stock market was neutral at the beginning of the day. Nevertheless, the dynamics of oil prices reflects concerns on international markets, he said.
Oil reserves contracted by 3.1 million barrels over the past week, exceeding expectations of analysts, but this failed to help oil prices to consolidate at high figures. Easing of the U.S. position on Iran and concerns over the future demand for crude restrain oil prices, so their base level of support is at U.S. $63 per barrel of the Brent blend, he added.
The mood of players at international markets is mixed as U.S. President Donald Trump prompted a delay in trade negotiations with China. The countries are far from solutions of key issues, and all recent achievements like weakening of sanctions against Huawei have already been priced in, Kravchuk said.
End
|
|
