Russian stocks to open flat on US holidays, neutral background
MOSCOW, Jul 4 (PRIME) -- Russian stocks are likely to start Thursday with almost no changes as investor activity will be low due to the Independent Day celebrations in the U.S., analysts said.
“In the short term, the RTS Index may continue its consolidation around 1,400. The higher geopolitical tensions around Iran may cool down general demand at all stock markets, but foreign activity will not be high today due to the holiday in the U.S.,” Anton Startsev, senior analyst at investment company Olma, said.
The U.S. stock index futures grew by 0.7–0.8%, but the bourses will be closed today. The European indices ended Wednesday in the green zone, while the Asian floors show mixed dynamics, Startsev said.
“We assess the external background before the start of trade on the Russian stock market as neutral today. The world’s floors have demonstrated mixed dynamics lately, as the Chinese indices eased due to the unclear situation with the trade deal with the U.S.,…while the U.S. and European indices grew on expectations that regulators may soften their monetary policy,” investment company Solid said in a research note.
Vitaly Manzhos, senior risk manager at Algo Capital, said that the MOEX Russia Index might change within 0.1–0.3% at the beginning of the day in the range of 2,815–2,830. “The morning contraction of futures for oil is only a correction, so we may say that the background prior to the start of trade in Russia is mixed. It creates conditions for the MOEX Russia Index to open with an insignificant change,” he said.
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