Russian stocks to open lower on rising geopolitical tension
MOSCOW, Aug 29 (PRIME) -- Russian stocks are likely to fall at Friday’s opening as the crisis in Ukraine has escalated and the E.U. has threatened new sanctions against Moscow, analysts said.
“Foreign background prior to the market’s opening is bad. The Russian indices will be pressured by concerns of the E.U. imposing new sanctions against Russian companies,” Geldy Soyunov, senior analyst at Alfa-Bank, said.
On Thursday, German Chancellor Angela Merkel said she does not rule out the Western states will have to consider new sanctions against Russia as early as on Saturda, as information on fresh turbulence instigated by rebels in previously peaceful regions is coming.
Ukraine’s President Pyotr Poroshenko said Russian troops are in Ukraine, the U.K. and the U.S. said they have satellite photos proving Russia transferred arms to Ukraine.
Andrei Vernikov, Zerich Capital deputy CEO, said that investors feel they are hostages to the situation because on the one hand politicians talk about peace, and on the other hand they are escalating the conflict.
“The geopolitical uncertainty is still a negative factor for the market, this is why further correction of the Russian stock indices is possible, which corresponds to the technical analysis data,” Olma’s senior analyst Anton Startsev said.
Some encouragement is coming from U.S. futures, which are edging up, and Brent oil prices, which are gaining 0.23%. Asian floors are mostly falling.
Investors will closely watch the U.S. GfK consumer confidence index, the Michigan Consumer Sentiment Index, Chicago PMI, Germany retail sales data, France’s producer price index, the E.U. CPI and unemployment data which are to be released today.
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