Russian stocks seen mixed on oil decrease, US–China conflict

MOSCOW, Aug 10 (PRIME) -- The Russian stock market is to open mixed on Monday with the MOEX Russia Index falling and the RTS rising as the oil prices sunk on August 7 and recovered, while a conflict between the U.S. and China continues escalating, analysts said.

"We expect a decline. The technical picture indicates a downward turn in metals, in particular, in Novolipetsk Steel (NLMK) and Severstal. Besides, the quotations of MTS, Inter RAO and Magnit can decline," Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market said.

Sergei Drozdov, analyst at investment company Finam, said that oil prices started to correct downwards on August 7 after reaching five-month highs. The market was concerned with deterioration of the U.S.–Chinese relations and a general cooling of the bullish mood.

On Monday morning, the oil prices restarted growth with Brent rising by 1.04% to U.S. $44.88 as of 9:15 a.m., Moscow time. According to Olma senior analyst Anton Startsev, the RTS index can rise in the morning as the weight of oil securities in it is about 41%.

The pressure of the U.S. White House on Beijing manifested itself not only in the TikTok debates, Drozdov said, but also in a decree by President Donald Trump targeted against an alleged threat from Chinese chat WeChat. These events caused a decline of high-tech companies on August 7.

Besides, the market suffered from continuing disagreement between the Republicans and the Democrats over a new package of economic stimuli. After the negotiations failed, Trump announced a set of measures, including a U.S. $400 per week addition to the unemployment benefit instead of a $600 paid until August 1 without consultations with the Congress. The Democrats bashed Trump for the step and called for restart of the talks.

Drozdov put the MOEX Russia Index support level at 2,950 and 2,920, resistance at 3,005. The RTS local support level was set at 1,266 and 1,250 and resistance at 1,280 and 1,300.

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