Russian stocks can grow on high oil prices, US trade agreement

MOSCOW, Oct 1 (PRIME) -- The Russian stock market will likely increase on Monday at the start of the trading session due to a high oil price and a positive mood on foreign markets after the U.S., Canada and Mexico amended their trade deal, analysts said.

“The RTS index can continue to rise today at the start of trade thanks to the oil and gas sector: the situation on the fuel market remains favorable,” Olma senior analyst Anton Startsev said.

He said that the situation on foreign markets can improve after the release of statements that trade disagreements between the U.S., Mexico and Canada have been settled.

“The effect will likely be the most noticeable on the North American stock market, while the emerging markets’ activity can decrease due to a holiday in China,” Startsev said referring to China's National Day and the closure of local market for a week.

Alor Broker analyst Alexei Antonov said that the increase of the Brent price with a target of U.S. $85 per barrel prevents the Russian prices from falling but the market is overheated, and foreign investors are still worried about the U.S. sanctions.

End