Russian stocks seen neutral on USЦChina talks uncertainty
MOSCOW, Oct 7 (PRIME) -- The Russian stock market is to open with marginal changes on Monday on the news about new difficulties in negotiations between the U.S. and China, analysts said.
УConsolidation close to the level of 1,300 of the RTS index is possible in the short term. Global market investors prefer protective assets, judging by the dynamics of the sovereign bonds yield, due to the uncertainty about the trade negotiations between the U.S. and China among others Ц the Chinese side had reportedly notified about narrowing of the range of issues subject to discussion at the talks,Ф Olma senior analyst Anton Startsev said
According to a report by Bloomberg, China will arrive to the negotiations with the U.S. on ThursdayЦFriday with a modified version of the final agreement that will not include reforms of the Chinese industrial policies and subsidies for business. Vadim Kravchuk, analyst at investment company Solid, said he expects this factor to reduce the likeliness of reaching an agreement during the negotiations.
Kravchuk said that the U.S. will likely announce new restrictions against China before Thursday. Because of the latest news about the forthcoming negotiations, the oil prices and the Asian markets are demonstrating neutral dynamics, he said.
Mikhail Poddubsky, senior analyst at Promsvyazbank, said that the Russian market is somewhat oversold, and the MOEX Russia Index can return to above 2,700 soon.
According to Kravchuk, several large Russian companies will be traded without dividends, which will presse the Russian market.