Russian stocks to open down on new US, EU sanctions

MOSCOW, Jul 30 (PRIME) -- Russian stocks will fall at the opening of the Wednesday’s trading session after the E.U. extended economic sanctions and the U.S. added new banks to the list of lenders banned from taking loans within the country, analysts said.

“Today at the start of the trading session a downward correction is possible in reaction to the E.U. and U.S. sanctions expansion against Russian companies,” Olma senior analyst Anton Startsev said.

Denis Khripushin from 2trade.ru agreed saying “Russian stocks will open with a decrease today.”

On Tuesday, the E.U. banned new military Russian contracts, imports of dual-use goods and the equipment to modernize the oil industry. The European Council also restricted Russian state-owned banks from selling shares and bonds in Europe.

The U.S. has added Russian Agricultural Bank, Bank of Moscow and VTB to the list of banks prohibited from taking mid and long-term loans on the American market. It also prohibited all contacts with private or legal U.S. bodies to United Shipbuilding Corporation and ordered a freeze of all its assets in the U.S.

“At the start of the trading session we expect to see a spike in turbulence because of yesterday evening’s anti-Russian sanctions. We suppose that later the MICEX index will fluctuate around the current levels waiting for the U.S. Federal Reserve monetary policy decisions, which are to be published late in the evening,” Promsvyazbank senior analyst Oleg Shagov said.

The Fed is to publish the results of its two-day meeting with the market expecting it to cut the QE stimulating programs with the aim of fully stop it in October.

Investors will also focus on Germany CPI, E.U. business climate and business expectations indices and U.S. ADP, GDP and oil and oil products reserves data that are to be released today.

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