Russian stocks may open flat on Italy woes, US trade row

MOSCOW, May 31 (PRIME) -- Russian stocks are likely to open flat on Thursday as a mixed background provides no strong drivers for local players, and conflicts in Italy and between the U.S. and  the importers continue, analysts said.

“We expect a neutral opening of the MOEX Russia Index with an insignificant change from the previous closing level of around 2,300. The levels of 2,290 and 2,280 will act as support, while the levels of 2,310 and 2,320 will act as resistance,” Vitaly Manzhos, a senior risk manager at investment company Nord Capital said.

The background for the Russian market is mixed as U.S. stock index futures were flat in the morning, while the Brent oil price fell 0.3%, Japan’s Nikkei225 index gained 0.9%, and Hong Kong’s Hang Seng grew 0.8%, Manzhos said.

Anton Startsev, a senior analyst at investment company Olma, said that the market players may focus on dividend ideas today, which may result in an upward rebound of the RTS index at the opening.

“Still, the political situation in Italy is far from becoming clear, and a factor of trade wars may re-emerge once again if the U.S. announces introduction of tariffs on imports of steel and aluminum from Canada, Mexico, and the E.U. today, (as forecasted in an article by the Washington Post),” Startsev said.

Manzhos also said that players of the local market will track the release of weekly statistics on oil and oil product reserves in the U.S. at 6:00 p.m., Moscow time.

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