Russian stocks may rise on global easing of geopolitical tensions

MOSCOW, Sep 12 (PRIME) -- Russian stocks may grow on Thursday morning as a global easing of geopolitical tensions, in particular, a de-escalation of the U.S.–China trade war and the situation around Iran, promotes purchases on all stock markets, analysts said.

“We see the external background before the opening of the Russian stock market today as a moderately positive one. Chinese indices are in the green zone today, as well as the U.S. floors were earlier… The situation is slightly improving,” Vadim Kravchuk, analyst at Solid Broker, said.

Previously, China restarted purchases of U.S. agricultural goods, and on Wednesday, it made a decision to delay duties for a small amount of U.S. goods for one year. Washington reacted with postponement of introduction of import duties on Chinese goods to October 15 from October 1, so chances for them to reach a deal at the beginning of October grew, Kravchuk said.

Western media also reported that U.S. President Donald Trump was considering softening sanctions against Iran, and that he even wanted to meet Iran’s president personally. This improvement in the Middle East is a positive factor that also supports stock indices, Kravchuk said.

Yelena Kozhukhova, analyst at Veles Capital, said that the MOEX Russia Index and the RTS Index did not overcome their key short-term resistance levels on Wednesday, so they still have the potential for a short-term growth.

“A short-term momentum for growth is still present on the Russian and the foreign markets from the fundamental point of view. On Thursday, investors will focus on the results of a meeting of the European Central Bank (ECB), and they expect the bank to cut interest rates and to announce new economic stimulation measures. Disappointment in the ECB’s policy may cause a world-wide withdrawal from risks,” Kozhukhova said.

“A moderate contraction of oil prices may restrain the Russian shares, especially in the oil and gas sector. At the same time, the general improvement in the appetite for risk allows us to expect the MOEX Russia Index to fully entrench within the 2,800–2,850 range and possibly to move to the upper half of the range,” Mikhail Poddubsky, senior analyst at Promsvyazbank, said.

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