Russian stocks seen flat on unsuccessful US–China talks

MOSCOW, Aug 16 (PRIME) -- The Russian stock market will likely open neutrally as investors will avoid risks because of protracted and unsuccessful U.S.–China trade talks, but a consolidating oil price will be a positive factor for the shares, analysts said.

“A neutral external background is formed today before the opening of the Russian market. The Chinese indices and oil are traded with a slight gain during the Asian trading session but the Russian trading floors will continue to be under pressure,” Vadim Kravchuk, analyst at investment company Solid Broker, said.

The U.S. indices closed flat on Thursday but are very likely to continue a downward correction on Friday. “Quite many parallels can be drawn with the end of 2018. Trade relations between the U.S. and China have not improved, of course, the key rate of the U.S. Federal Reserve System (Fed) was cut and the rhetoric is different but statistics have deteriorated,” Kravchuk said.

Anton Startsev, senior analyst at investment company Olma, said that a volatility on foreign markets would lead to faltering demand for risky assets.

Alor Broker analyst Alexei Antonov said that the Brent oil is trying to consolidate above U.S. $59 per barrel, which might prompt a 0.3–0.4% upward gap of the Russian market at opening.

Alexei Korenev, investment company Finam’s analyst, said that the U.S. will publish a slew of statistics reports, including construction and construction permits, the University of Michigan’s consumer moods and expectations indices. Baker Hughes will publish the total global rig count and active U.S. and Canada rigs. Russia will release the annual and monthly producer price index.

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