Russian stocks can grow as oil prices, US indices erase losses

MOSCOW, Sep 11 (PRIME) -- The Russian stock market can grow slightly on Wednesday in the morning as oil prices and U.S. indices erased losses on Tuesday in the evening, analysts said.

“The external background before the opening of the Russian trade looks weakly positive so far: besides growing oil, U.S. indices recovered after our session closing and the futures for them have added about 0.1% today in the morning,” Alor Broker’s analyst Alexei Antonov said

U.S. President Donald Trump unexpectedly dismissed national security adviser John Bolton late Tuesday, which, according to Vadim Kravchuk, analyst at Solid Broker, could have caused an oil price fall. Besides, the U.S. Energy Department reduced the outlook for the Brent price for 2019 to U.S. $63.39 from $65.15.  

But the Brent price grew 0.64% to $62.78 as of 9:08 a.m., Moscow time.

Kravchuk said that investors are worried over a slowdown of the Chinese economy after the release of statistics and as international rating agency Fitch reduced its outlook for the economic rise of China in 2019 to 6.1% from 6.2% and for 2020, to 5.7% from 6% as a result of escalation of the trade dispute with the U.S.

Finam analyst Sergei Drozdov said that the support level for the MOEX Russia Index stands at 2,760 and 2,736. The resistance notch is 2,800 and 2,815. The local support level for the RTS index stands at 1,328 and 1,295, and resistance at 1,363.

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