Russian stocks can rise on hopes for US–China conflict ease

MOSCOW, Jan 9 (PRIME) -- The Russian stock market is likely to open with an upward gap on Wednesday as investors hope for easing of the U.S.–China trade conflict after another round of negotiations finishes, while a recovery of oil prices and U.S. stocks is also favoring growth, analysts said.

“Increase of the RTS Index remains possible as traders on global markets are still demonstrating optimism, which is in many respects due to expectations of improvement of the U.S.–China relations in trade (at least, it is expected today that a round of trade negotiations on the level of ministries’ representatives will finish today, after that negotiations on a higher level can start),” investment company Olma’s senior analyst Anton Startsev said.

Promsvyazbank analyst Mikhail Poddubsky said that the U.S. stock market indices have grown by 2.5–3.0% since the start of the year, and Brent is recovering to U.S. $60 per barrel. These factors are supporting Russian assets.

According to Alpari senior analyst Anna Bodrova, Russian investors will react negatively to information that U.S. Congress officials are asking to postpone lifting sanctions against companies of Russian tycoon Oleg Deripaska, RUSAL, En+ Group and EuroSibEnergo.

A document submitted by a representative of the Democrats Chuck Schumer, which can block the repeal of the sanctions against Russian aluminum producers, is also an important detail, the analyst said.

Finam analyst Sergei Drozdov said that the MOEX Russia Index support level stands at 2,375 and 2,350, and the resistance level is at 2,405 and 2,420. The RTS index’ local support is 1,120 and resistance is at 1,140 and 1,160.

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