MOSCOW, Nov 7 (PRIME) -- The Russian stock market will likely open with a decline on Thursday on the news that a meeting of the U.S. and China’s leaders to sign a trade agreement was postponed to December, analysts said.
“The RTS index growth may be suspended today at the start of trade,” Olma senior analyst Anton Startsev said.
“Reports about a possible postponement of the signing of the U.S.–China trade agreement for the next month have become the reason for a fall of investor readiness to take risks which led to a decrease of the yields on the U.S. state debt market and growth of the U.S. dollar index (DXY) reflecting the dollar dynamics against the basket of foreign currencies.”
A meeting between the U.S. and Chinese leaders to sign a trade agreement was postponed to December, as reported by Bloomberg. Promsvyazbank senior analyst Mikhail Poddubsky said that the Asian markets sagged a little on Thursday in the morning on the news.
Besides, the International Monetary Fund (IMF) warned that the European monetary policy had almost exhausted its potential, and the E.U. needs an emergency scenario. The fund reduced the euro zone gross domestic product (GDP) growth forecast to 1.2% from 1.3% for 2019 and raised to 1.5% from 1.4% for 2020, which is also a reason for concern, Poddubsky said.
Oil quotations fell by 1.91% to U.S. $61.76 during Wednesday’s trading session. According to Finam analyst Sergei Drozdov, the news that the key participants of the OPEC plus nonmember oil output deal would not insist on raising the amount of output reduction at a December meeting disappointed investors, and the negative dynamics strengthened due to U.S. crude reserves’ growth, as reported by the Energy Department.
Drozdov said that the support level for the MOEX Russia Index stands at 2,950 and 2,920. The resistance notch is 2,998. The local support level for the RTS index stands at 1,448 and 1,431, and resistance at 1,470 and 1,490.
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