Russian stocks slide on worries about US trade policies, Fed data

MOSCOW, Feb 21 (PRIME) -- The Russian stock market decreased on Thursday on investor concern about possible U.S.–Europe trade disputes, the last meeting of the U.S. Federal Reserve System (Fed), and falling Western markets, analysts said.

The MOEX Russia Index fell 0.71% to 2,470.23, and the RTS Index decreased 0.49% to 1,188.60.

“Asian optimism about the final stage of the U.S.–Chinese negotiations lasted only for the first hours of trade on the Russian market,” Otkritie Broker analyst Andrei Kochetkov said.

“The European indices were not really convincing, also U.S. President Donald Trump plans to take care of trade problems with Europe after the negotiations with China. So the Russian market found no reason to continue to rise.”

The U.S. and China have reached a temporary compromise in their trade debate and will sign a memorandum on Friday. The terms have not been officially announced.

Kochetkov said that the U.S. can switch to waging a trade war against Europe, and in this case Russian metals producers will lose most because demand for their products from the European car makers may be hurt. In general, a U.S. trade conflict with Europe would have a more severe outcome for Russia than the current spat with China.

Investment company Finam expert Vasily Oleinik said that European investors were taking profits, as the details of the U.S.–China agreement are yet to be revealed.

Sofya Kirsanova, analyst at managing company Raiffeisen Capital, said that investors were pessimistic after publication of the U.S. Fed minutes, which were “not as dovish as market participants expected.” None of the Fed officials spoke in favor of a rate reduction.

Below are the MOEX Russia Index’ five most active stocks on Thursday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-1.68	203.41	13.952
Lukoil	+0.05	5447.5	2.574
Gazprom	-0.6	153.5	2.344
Norilsk Nickel	-1.39	14052	1.863
Novatek	-0.3	1121.6	1.359

(65.8568 rubles – U.S. $1)

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