Russian stocks seen mixed on doubts about US trade deal plan

MOSCOW, Nov 8 (PRIME) -- The Russian stock market will likely open mixed on Friday on the news that a U.S. plan to sign a trade deal with China has faced internal opposition, analysts said.

Global investors started to take profit at the end of Thursday’s trading session. “A Reuters report casting doubt on earlier statements by the Chinese side (that Beijing and Washington had already agreed to cancel the import duties in phases) was the reason for cautious profit taking,” Finam analyst Sergei Drozdov said.

A U.S. plan to reduce the duties on Chinese goods had reportedly faced an internal opposition and the decision had not been made, he said.

Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market, said that the Russian stock market is expected to be mixed, and investors s will focus on a financial report by the Moscow Exchange.

Mikhail Poddubsky, senior analyst at Promsvyazbank said that the U.S. market remains near all-time highs despite the start of impeachment procedure against President Donald Trump.

The Chinese exports and imports decline was less significant than expected: 0.9% and 6.4% respectively against 3.5% and 8.9% forecasts, and the Chinese stock exchange is near neutral on Friday.

Drozdov said that the support level for the MOEX Russia Index stands at 2,980 and 2,950. The resistance notch is 3,010. The local support level for the RTS index stands at 1,470 and 1,450, and resistance at 1,482 and 1,490.

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