Russian stocks can grow on US–China talks optimism

MOSCOW, Oct 11 (PRIME) -- The Russian stock market will likely increase on Friday morning, before the last day of U.S.–China trade negotiations, which investors believe will end with a deal, analysts said.

“Continuation of a budding increase of the RTS index is possible today at the start of trade,” Olma’s senior analyst Anton Startsev said.

“U.S. President Donald Trump expressed optimism about the negotiations with China and confirmed his participation on Friday, which significantly influenced investors’ estimates concerning prospects of the global economy: demand for protective assets is falling, judging by the dynamics of the treasuries yield and the U.S. dollar rate against the basket of global currencies, which means resumption of capital inflow to the developing markets (if the U.S.–China negotiations confirm the optimistic forecasts).”

The external background for the Russian trading session start is positive as the U.S. stock markets rose by an average of 0.6% on Thursday, the stocks futures grew on Friday morning, the European markets also grew on Thursday, the Asian markets rose in the morning on Friday, Startsev said.

Germany and France will publish inflation figures, the U.S. University of Michigan will post several reports including consumer inflation expectations, Baker Hughes will release a weekly change in the number of drilling rigs. Russia will publish trade surplus. VSMPO-Avisma and Rosneft will close the registers for dividends, PhosAgro and MMK will trade with dividends for the last day.

According to Alexei Korenev, investment company Finam’s analyst, these are the most important reports expected on Friday.

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