Russian stocks may open flat amid growing political risks

MOSCOW, May 14 (PRIME) -- The Russian stock market may open with slight movement and consolidate later in the day on Tuesday thanks to uncertain global environment, analysts said.

“We expect the MOEX Russia Index to move no more than 0.3% within a 2,500–2,515 range at the opening… and to consolidate later amid an uncertain external background,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Vadim Kravchuk, analyst at investment company Solid, sees the global environment as moderately negative with the U.S.–Chinese relations worsening impetuously after China said it would raise tariffs on U.S. $60 billion in U.S. goods in retaliation for the President Donald Trump administration’s latest decision to increase duties on $200 billion worth of Chinese products.

Olma senior analyst Anton Startsev said the RTS index may edge down at the opening, but is unlikely to break through the 1,200 mark.

Asian markets, and U.S. and European indices futures are seen lower. The Brent crude price is slightly below $71 per barrel.

In Russia, investors may also follow results of a meeting between Russian President Vladimir Putin and U.S. Secretary of State Michael Pompeo in Sochi.

End