Russian stocks may ease following Monday’s contraction in US

MOSCOW, Oct 30 (PRIME) -- Russian stocks are likely to edge down at opening on Tuesday as local players may price in Monday’s contraction of the U.S. bourses, analysts said.

“We expect the MOEX Russia Index to open with an insignificant contraction around 0.3% close to 2,310. The levels of 2,300 and 2,290 will act as the closest support, while 2,320 and 2,330 will become significant resistance,” Algo Capital’s senior risk manager Vitaly Manzhos said.

The background for the Russian stock market is mixed taking into account the Monday fall of the U.S. stock indices, Manzhos said.

“Yesterday, (U.S. President Donald) Trump said in an interview to Fox News that the trade deal with China should be large and that the U.S. is ready to strike the deal now, but China is not ready. After that, Bloomberg released reports that the U.S. was working on the duties that would hit the entire Chinese import if talks between Trump and (Chinese President Xi Jinping) scheduled for the end of November fail,” Mikhail Poddubsky, Promsvyazbank’s senior analyst, said.

This resulted in contraction of U.S. stocks on Monday, which happened after trade had ended in Russia, he said.

“The MOEX Russia Index may start the Tuesday trading session with a small decrease within 0.1–0.3% and spend the day in a 2,305–2,325 range,” Anna Bodrova, senior analyst at Alpari, said.

The U.S. trading has a negative impact on the Russian market, but the Asian bourses are in the green zone early in the day, which may balance the negative mood of local indices, Bodrova said.

End