Russian stocks seen growing on US–Mexico talks, oil price rise

MOSCOW, Jun 7 (PRIME) -- The Russian stock market will likely edge up at opening on Friday as foreign markets grew on the news about the U.S.–Mexico trade negotiations, while the oil price rose in the morning, analysts said.

“The external background remains quite favorable to maintain an upward trend of the RTS index. Rumors about a possible postponement of the U.S. duties on imports from Mexico were not confirmed at an official level but favored a decrease of concern about the trade wars,” Anton Startsev, senior analyst at investment company Olma, said.

Promsvyazbank analyst Mikhail Poddubsky said that a lack of progress in the U.S.–China negotiations and the U.S. plans to introduce 5% duties on Mexican imports on June 10 if the future negotiations are unsuccessful remains a risk factor globally. The Mexican delegation is still in the U.S. and the negotiations will continue on Friday.

Startsev said that a speech by Chairman of the European Central Bank Mario Draghi disappointed some investors, who expected a detailed explanation of the future monetary policies.

Alor Broker analyst Alexei Antonov said that the MOEX Russia Index and Sberbank can set new record highs on Friday as foreign markets grow and Brent rose by about 0.4% to U.S. $62.5 per barrel.

Finam analyst Sergei Drozdov said that the local support level for the MOEX Russia Index stands at 2,690 and 2,660, and the basic at 2,550. The resistance notch is 2,745. The local support level for the RTS Index stands at 1,280, the basic at 1,230 and resistance at 1,302.

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