Russian stocks can rise as US Trump says to restart China talks
MOSCOW, Jun 19 (PRIME) -- The Russian stock market will likely grow on a statement by U.S. President Donald Trump that the U.S. and China plan to resume trade negotiations soon, analysts said.
“The statements by the U.S. President cheered up the market. The chances of signing a trade agreement between the U.S. and China are growing. This is a positive signal for the U.S. stock market,” Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market said.
“Growth on the external commodities and stock markets can support continuation of a rally in Russia.”
Finam analyst Sergei Drozdov said that improvement of trade relations between Washington and Beijing can provide sustainable demand for oil. Besides, statistics by the American Petroleum Institute (API) showed reduction of the reserves. The Energy Department report will be in the focus of investors’ attention later on Wednesday.
Drozdov said that the local support level for the MOEX Russia Index stands at 2,728 and 2,690. The resistance notch is 2,780. The local support level for the RTS Index stands at 1,350 and 1,300, and resistance at 1,370.
Olma senior analyst Anton Startsev said that the market will wait for a key rate decision by the U.S. Federal Reserve System (Fed) later on Wednesday, after the closure of the Russian trading session, and an ensuing press conference. “The question which can be answered today in the afternoon is whether the U.S. Fed will justify the optimistic market expectations of the monetary policy prospects,” he said.
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