Russian stocks to rise on oil prices, US-Canada-Mexico deal

MOSCOW, Oct 2 (PRIME) -- Russian stocks are likely to grow on Tuesday morning supported by high oil prices and a positive investor mood after the U.S., Canada, and Mexico reached a new trade agreement, analysts said.

“The Russian stock market will open higher on Tuesday against the backdrop of improving mood of investors at other trade floors of the world after the U.S. has reached a trade agreement with Canada and Mexico,” Ivan Marchena, an analyst at Forex Club group of companies, said.

Investment company Olma’s senior analyst Anton Startsev said that high oil prices will remain a support factor for liquid Russian shares.

“Futures for the Brent oil are trading close to U.S. $85 per barrel on concern about falling oil exports of Iran. Bloomberg said Iranian oil exports fell by 1.72 million barrels a day in September,” Startsev said.

Anna Bodrova, Alpari’s analyst, said that oil prices may jump even to $88 as a lack of an OPEC position about the falling Iranian exports supports bullish trade in oil.“Anyway, bulls now have a fascinating chance to climb,” she said.

But Startsev also said that the Italian economy is a potential threat to the world’s financial markets.

“Some market participants point to higher yields of the Italian sovereign bonds (as the yield on 7-year securities has exceeded 3%), which reflects a higher uncertainty about a controversial draft budget. So, growth of the RTS above 1,200 is questionable as a general risk appetite is decreasing,” he said.

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