Russian stocks to open flat on lack of drivers for growth

MOSCOW, Jul 16 (PRIME) – The Russian stocks are likely to open with little change on Tuesday on a lackluster external background, while foreign traders are waiting for corporate reports, analysts said.

“The external background provides no grounds for the RTS Index to move away from its consolidation. Traders of foreign stock floors are waiting for a flow of corporate reports for the second quarter of this year,” Olma’s senior analyst Anton Startsev said.

The U.S. stock indices grew by about up to 0.2% on Monday, while the futures for the indices are in the green zone on Tuesday morning. The European indices also grew on Monday, while the majority of the Asian markets are in a slight downward correction, Startsev said.

Investment company Solid also said in a research note that the background for the Russian market is neutral in the morning.

“The Chinese indices started to fall in spite of some positive moments…Yesterday’s data on gross domestic product confirmed that the trade dispute (with the U.S.) has a noticeable impact on the country’s economy, and the risks are rising. But both countries are interested in the deal, so investors hope for a favorable outcome,” the research note read.

The Brent oil price again failed to stay above U.S. $67 per barrel. “There are still chances for growth (of the oil price) to happen, as the current trend is yet to end, and joint oil reserves fell from their maximum levels a long time ago,” Solid said in the research note.

Startsev also said that investors will focus on the financial reports of banks JPMorgan Chase, Goldman Sachs, and Wells Fargo, while the U.S. is to release retail trade and industrial output data.

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