Russian stocks may open flat on absence of strong drivers

MOSCOW, Dec 11 (PRIME) -- Russian stocks are likely to open neutrally on Tuesday as local players have not received any strong drivers early in the day, and dynamics of oil prices also favor a flat start of the day, analysts said.

“Today the RTS Index may consolidate below 1,150 at the start of trade. Technical analysis shows a slowdown of contraction of the S&P 500 index after it fell to the low end of its wide consolidation formation. At the same time, the pressure of sales on the Asian bourses eased due to a report about a phone conversation between China’s vice premier with the U.S. treasury secretary where they discussed the schedule of upcoming trade talks,” Olma’s senior analyst Anton Startsev said.

But a delay of the British parliamentary vote on the Brexit, which now is likely to be held only in January 2019, worsens uncertainty for the European investors, and may prevent the Christmas rally, Startsev added.

Sergei Drozdov, investment company Finam’s analyst, said that dynamics of the Brent oil price are also uninspiring.

The Brent price edged up only 0.25% to U.S. $60.12 per barrel as of 8.52 a.m. Moscow time on Tuesday after falling 2.64% to $59.78 on Monday.

“After pricing in the story with the OPEC+ oil output reduction, speculators focused their attention on the current problems of the global economy, the ongoing confrontation between Washington and Beijing and a slowdown of economic growth in some countries of the Eurozone bear major risks for that,” Drozdov said.

Promsvyazbank’s senior analyst Bogdan Zvarich also said that even trade in the ruble is unlikely to start with any major movements as players are waiting for a Friday meeting of the central bank, where the regulator will discuss the monetary policy and restart of foreign currency purchases for the Finance Ministry.

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