Russian stocks may open flat on Tuesday on lack of drivers

MOSCOW, Sep 24 (PRIME) -- The Russian stock market is likely to open neutrally on Tuesday as there is a lack of strong drivers for the market while investors are waiting for more news around the U.S.–China trade negotiations, analysts said.

“The consolidation of the RTS Index remains the most relevant scenario. Traders at global markets in general, including emerging markets, do not show high activity as they are waiting for a progress in the U.S.–China trade negotiations, as the highest-level meetings will reportedly be held next week,” investment company Olma’s senior analyst Anton Startsev said.

Mikhail Poddubsky, senior analyst at Promsvyazbank, said that the bank’s research department saw no strong internal drivers for the Russian market on Tuesday morning. “In the baseline scenario, we expect the MOEX Russia Index to consolidate below 2,800,” he said.

But Vadim Kravchuk, analyst at investment company Solid, said that a further downward correction of Russian indices was to be expected on Tuesday. “The world’s bourses are falling due to the uncertainty concerning the further economic growth, which is confirmed by the latest macro-indicators, and also due to a temporary break in the trade negotiations of China and the U.S.,” he said.

The situation in the euro zone is also a reason for concerns, and the Monday release of the Purchasing Managers’ Index (PMI) for Germany turned out to be worse than expected. The PMI figure for the country was at its lowest point since 2009, which is a very important signal, Kravchuk said.

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