Russian stocks to rise at opening on US-EC truce, firming oil

MOSCOW, Jul 26 (PRIME) -- Russian stocks are likely to open higher on Thursday on the news that the U.S. and the E.U. ease their stance on trade wars, and on growing oil prices, analysts said.

“We expect the MOEX Russia Index to open with a moderate increase of about 0.3% close to 2,290. The levels of 2,270 and 2,260 will act as the closest support, while 2,300 and 2,310 will become the resistance,” Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said.

Manzhos also said that the background for the Russian market is mixed, as the U.S. stock index futures showed mixed dynamics, gold prices fell 0.21%, Japan’s Nikkei225 index decreased 0.15%, and Hong Kong’s Hang Seng index lost 0.6%. But the oil prices grew about 0.5%, and the increase creates conditions for a favorable start of the day by the Russian market, he said.

“Today, a slight increase of the RTS Index is possible at the beginning of the day, as support comes from the favorable condition of the oil market thanks to Wednesday’s data showing a noticeable weekly contraction of the U.S. oil reserves,” Anton Startsev, a senior analyst at investment company Olma, said.

The market is also supported by easing worries about the strengthening of trade barriers in the world economy, “as the U.S. and the E.U. have agreed to suspend introduction of high duties on some goods, including cars,” Startsev said.

Mikhail Poddubsky, a senior analyst at Promsvyazbank, said that recent reports on possible introduction of the new U.S. sanctions supported Russian assets.

On Tuesday, statements of U.S. Senators Lindsey Graham and Bob Menendez about preparation of a new law to toughen anti-Russian sanctions undermined the local market, “but on Wednesday, the majority of media point to the upcoming U.S. parliamentary holidays, and suppose that it is unlikely for it to consider the new sanctions bill before September,” Poddubsky said.

Manzhos also said that local players will track U.S. statistics, including durable goods orders and weekly jobless claims. Startsev said that 72 companies of the U.S. S&P 500 index planned to release their financial reports, which may have an impact on the national trade.

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