Russian stocks may fall as US ramps up trade war with China

MOSCOW, Sep 18 (PRIME) -- The Russian stock market may open with a downward gap on Tuesday as the external background worsened due to U.S. President Donald Trump’s announcement of new import duties on Chinese goods worth U.S. $200 billion, analysts said.

“The Russian stock market ended the previous day very close to local peaks and four-month high figures. The MOEX Russia Index closed around 2,373 while its peak was at 2,379…The external background has worsened somewhat before the start of the trade today, and it may draw the market back,” Anna Bodrova, a senior analyst at Alpari, said, adding that the stock indicator may fall 0.1–0.2% at the beginning of the day.

Trump said that Washington will introduce 10% duties on Chinese goods already on September 24, and that the second stage of the duty increase will happen in 2019. If Beijing cancels trade negotiations that it planned to hold with the U.S., the world stock markets may launch sales, Bodrova said.

Anton Startsev, a senior analyst at investment company Olma, said: “Data of the technical analysis still says that the RTS index may stop its growth close to 1,100. The external background may exert some pressure on activity of buyers at the beginning of the trade.”

Besides announcing introduction of 10% duties on $200 billion Chinese imports, Trump also threatened to expand duties on $267 billion more Chinese goods in case Beijing retaliates, hitting everything that U.S. imports from China with duties, Startsev said.

End