Russian stocks seen flat on US–China deal uncertainty

MOSCOW, Nov 6 (PRIME) -- The Russian stock market will likely open with marginal dynamics on Wednesday on the back of doubts surrounding preparations for signing of the U.S.–China trade deal, analysts said.

“The MOEX Russia Index grew by almost 9.5% over the last three weeks and a half and looks slightly overheated locally. Declining optimism on the global markets may lead to a switch to marginal dynamics close to 2,950,” Promsvyazbank senior analyst Mikhail Poddubsky said.

He said that the optimism about the plans to sign a trade deal between the U.S. and China had faded after media reports about China’s wish intent to lift more U.S. restrictions to sign the first stage of the trade agreement.

According to Finam analyst Sergei Drozdov, the markets will probably continue waiting for negative news from the trade dispute in spite of a possible temporary truce between China and the U.S.

Drozdov said that the support level for the MOEX Russia Index stands at 2,920 and 2,900. The resistance notch is 2,965 and 2,995. The local support level for the RTS index stands at 1,448 and 1,431, and resistance at 1,470 and 1,490.

Olma senior analyst Anton Startsev said that Russian investors will track a report of Rosneft at 10:00 a.m., Moscow time and weekly inflation figures at 4:00 p.m.

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