Russian stocks to open flat, to watch for U.S.-China, OPEC+ news

MOSCOW, Dec 5 (PRIME) – The Russian stocks are likely to open unchanged on Thursday as the market is waiting for the news about a U.S.-China trade deal and OPEC+ meeting, analysts said.

Alexei Antonov, analyst at Alor Broker, said that the market grew on Wednesday on the news that the U.S. and China were likely to sign the first stage of a trade deal even before December 15. The effect, however, will not be long lasting because the countries had failed to reach a deal several times.

“The external background is slightly negative this morning, as the U.S. stock index futures and oil prices fall. The futures for the Russian indices closed neutrally, so we expect the market to open close to zero today, maybe with a slight contraction,” Antonov said.

Yelena Kozhukhova, analyst at Veles Capital, said that the Wednesday improvement of the mood of investors at global bourses is not enough for Russian stocks to grow confidently.

“The oil factor is more important for the Russian market in this regard. If the OPEC+ pleases the markets, the risky assets will get additional support,” Kozhukhova said.

Pressure on the Russian indicators in the short-term will be exerted by the resistance levels of 2,940 and 1,450. There will be no growth until the levels are broken. The guidance for the MOEX Russia Index is in the 2,875–2,925 range, she said.

Antonov also said that investors would track the news from the OPEC+ summit, which will discuss another 400,000-barrel contraction of oil production and prolongation of the deal until the end of June 2020 or for the whole year of 2020.

“We think that no fateful decision will be made. In the best case scenario, the sides should agree to prolong the deal to the first half (of 2020),” he said.

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