Russian stocks may rise on new U.S., China government support

MOSCOW, Jun 16 (PRIME) -- Russian stocks are likely to increase on Tuesday morning on new support measures in the U.S. and China, analysts said.

“Today the RTS index may rise at the beginning of trade. Reports about the U.S. presidential administration’s discussion of an almost U.S. $1 trillion investment in infrastructure projects and about China’s plans to offer about $140 billion bonds to finance economic support measures caused a stir on the international stock floors,” investment company Olma’s senior analyst Anton Startsev said.

The U.S. stock indices grew by 0.6–1.4% on Monday as well as the futures for the indices. The Asian stock floors also grew this morning, Startsev said.

Alor Broker’s senior analyst Alexei Antonov said that the Russian market has not priced in Monday’s growth of the U.S. bourses.

“Taking into account that the futures for the U.S. stock indices grew by 1.3–1.8% this morning, we expect a strong start of the national stock trade,” Antonov said.

Yelena Kozhukhova, analyst at investment company Veles Capital, said that the mood of the international stock markets was pessimistic at the beginning of the week, but improved closer to the end of Monday on expectations of a report that U.S. Federal Reserve System’s Chairman Jerome Powell is to present to the U.S. Congress.

“The U.S. is also to release May retail sales and industrial production statistics. It will very likely show improvement in the situation and support a short-term rebound of risky assets from their lows,” Kozhukhova said.

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