MOSCOW, Apr 17 (PRIME) -- The stock market is likely to open higher on Tuesday as investors will price in the decision of U.S. President Donald Trump to delay new sanctions against Russia, analysts said.
“The Russian market is trying to live a day-to-day existence without jumping the gun to avoid asking the question “When will it all fall again?” too often. A smart move, taking into account the ambiguous external background and prevailing long-term risks. The local trade floors will edge up today as the U.S. has temporarily delayed tougher sanctions,” Anna Bodrova, a senior analyst at Alpari, said.
Late on Monday, the Washington Post reported that Trump postponed a preliminary plan to impose additional economic sanctions on Russia, retracting an April 15 announcement by U.S. Ambassador to the U.N. Nikki Haley.
Bodrova said that the MOEX Russia Index may open 0.2–0.5% higher due to the delay of sanctions, while the RTS index may start the day with a 0.3–0.5% upward gap due to the Monday evening’s contraction of the U.S. dollar against the ruble.
“Today an upward rebound of the RTS index is possible at the beginning of the day. President of the U.S. has reportedly delayed new sanctions against Russian companies linking the decision to possible Russian actions, which eased market worries,” Anton Startsev, a leading analyst at investment company Olma, said.
“At the same time, the technical analysis still indicates a possibility that a downward correction of the RTS index will resume.”
Bodgan Zvarich, a senior analyst at investment company Freedom Finance, said that the positive external background will also support the Russian market early in the day. The U.S. stock indices grew on Monday and the futures for U.S. stocks are rising on Tuesday. The oil price stabilized above U.S. $71.5 per barrel, he said.
During the day, investors will track the release of U.S. oil reserves by the American Petroleum Institute, and of U.S. macro statistics, including industrial output and the housing market, Zvarich said.
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