Shares seen rising at opening on US gains, talks with China
MOSCOW, Apr 24 (PRIME) -- The Russian stock market will likely edge up at opening on Wednesday on the back of solid financial reports by the U.S. companies and continuation of the U.S.–China trade negotiations, analysts said.
“The stock market America closed with big gains, the RTS index futures added almost half a percent, besides, their growth was not caused by strengthening of the ruble, or asset revaluation due to currency difference,” Alexei Antonov, analyst at Alor Broker, said.
“This is why we are waiting for a stock market opening with an about 0.3% gain, later trade will depend on the external background,”
Mikhail Poddubsky, chief analyst at Promsvyazbank, said that the U.S. and China are continuing negotiations to resolve a trade conflict with two more rounds scheduled for April 30 and May 8, which is seen as a positive signal on the market.
Solid financial reports from the U.S. are also supportive of the risk appetite worldwide, Poddubsky said.
Olma senior analyst Anton Startsev said that investor activity has abated on the developing markets, as they prefer the securities of Western companies due to a good reporting season there.
The oil market activity has also declined as a report by the American Petroleum Institute (API) indicated a sudden reserve growth, outbalancing the effect of restrictions on supplies from Iran.
According to Georgy Vashchenko, head of investment company Freedom Finance’s department for trade operations on the Russian stock market, the MOEX Russia Index will likely trade in a 2,580–2,600 range. Startsev said that the RTS index will likely pare growth due to effects of the external background.
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