Russian stocks can decrease as oil price, foreign markets fall

MOSCOW, May 16 (PRIME) -- The Russian stock market will likely fall at the opening of Wednesday’s trading session because of a decrease of oil futures and foreign markets, analysts said.

“Taking into account a weak closing of the U.S. stock market, the external background before the start of trade in Russia can be called moderately negative,” Vitaly Manzhos, senior risk manager at investment company Nord Capital, said.

The U.S. stock market futures are neutral on Wednesday morning, the Brent oil eased 0.3%. Gold futures rose 0.2%. Japan’s Nikkei225 lost 0.3% and the Hang Seng 0.2%, and these factors form a bearish background for the Russian market, Manzhos said.

Olma senior analyst Anton Startsev said that the stock markets remain under pressure as the yield on U.S. Treasuries continues to rise.

As a result, the MOEX Russia can open with an about 0.4% decline at about 2,325–2.330. The levels of 2,320 and 2,300 will be the closest support and of 2,340 and 2,350 the resistance.

Startsev said that the RTS Index can deepen its downward correction.

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