Russian stocks seen neutral on flat US indices, oil price trend

MOSCOW, Apr 10 (PRIME) -- The Russian stock market is to open neutrally on Wednesday on the back of marginal dynamics of the U.S. stock market indices and firming oil prices, analysts said.

“We see the external background before the start of trade on the Russian market as neutral. The MOEX Russia Index has set new highs at the session’s closing yesterday but deterioration of the global market mood and an insignificant oil price correction will hold down further growth,” Vadim Kravchuk, analyst at investment company Solid, said.

The U.S. threats to introduce U.S. $11 billion worth of duties on several goods from Europe of were confirmed by President Donald Trump, pushing European and later the U.S. market indices down, Kravchuk said.

Alor Broker analyst Alexei Antonov said that the fact that flat U.S. stock market indices will most probably trigger a neutral opening of the Russian market.

The Brent oil grew 0.24% t0 U.S. $70.78 as of 9:24 a.m., Moscow time.

The International Monetary Fund (IMF) reduced the global gross domestic product (GDP) rise forecast to 3.3% from 3.5% for 2019 blaming trade conflicts, decline of business confidence and costlier debt servicing for the cut.

Finam analyst Sergei Drozdov said that investors will focus on a meeting of the European Central Bank and minutes of the U.S. Federal Reserve System (Fed). The bankers are expected to be dovish and return a positive vibe to the markets.

The U.S. Energy Department will release the data which will likely define the oil price for the rest of the week, Drozdov said.

Kravchuk said that financial reports by ALROSA and Cherkizovo are to be the main Russian Wednesday’s corporate events.

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