Russian stocks seen falling on US Trump impeachment inquiry

MOSCOW, Sep 25 (PRIME) -- The Russian stock market will likely decrease on Wednesday in the morning as investors will flee from risky assets on the back of an impeachment inquiry against U.S. President Donald Trump, analysts said.

“The moods on the global markets deteriorated after the resumption of political issues in the U.S.,” Mikhail Poddubsky, senior analyst at Promsvyazbank, said.

Speaker of the U.S. House of Representatives Nancy Pelosi announced on Tuesday a formal impeachment inquiry against Trump for alleged negotiations with Ukrainian President Vladimir Zelensky on support of lawyer Rudy Giuliani, who tried to launch an investigation into alleged corruption ties of the son of Joseph Biden, who was the leader of the presidential race of the Democrats.

“We expect a correction of up to 1%. There is no news on the local market, it follows the dynamics of foreign trade floors. There was a strong correction of the shares of high-tech companies in the U.S. on the news that Trump is reluctant to sign an unbeneficial deal with the People’s Republic of China,” Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market, said.

Poddubsky said that the attention to the China–U.S. trade negotiations would fall into the shade as high-level trade talks between the states will resume on the week starting from October 7.

Olma’s senior analyst Anton Startsev said that the investigation against Trump will likely offset any positive expectations concerning the trade deal with China, and that the Russian market will remain under pressure in the short term.

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