Russian stocks seen falling slightly on US tax reform issues

MOSCOW, Dec 1 (PRIME) -- The Russian stock market can decrease slightly on Friday at the start of the trading session because troubles in discussion of the U.S. tax reform are averting investors from emerging markets assets despite a rising oil price, analysts said.

“From the point of view of technical analysis, a possibility of strengthening of the RTS index correction remains in force. The U.S. Senate could not approve a resolution on a tax reform draft (the vote was postponed for today) and this has triggered volatility growth: the VIX volatility index rose to 11.3 from 10.7. An elevated volatility in the U.S. was a limiting factor for investors on developing markets as well (the stock exchange index of developing markets MSCI EM fell 1.8% yesterday),” Olma senior analyst Anton Startsev said.

Oleg Shagov, head of the investment company Solid’s research department, said that the influence of external factors on the Russian market was close to neutral.

Brent quotations were close to U.S. $62.8 per barrel on the back of a statement that participants of the oil output reduction agreement of OPEC and non-OPEC states decided to prolong the deal until the end of 2018, Shagov said.

U.S. stock market futures were slightly falling; key Asian indices were demonstrating mixed dynamics, the European premarket signaled a decline later in the day.

All these factors, according to Shagov, will make the MOEX Russia Index open at about 2,100 and regain earlier losses later on Friday.

A financial forum will take place on Friday, and investors will pay attention to the statements. MSCI Russia will be rebalanced. MegaFon’s financials release is the most anticipated corporate event.

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