Russian stocks can decrease as traders fear for Italian PM quit

MOSCOW, Dec 5 (PRIME) -- The Russian stock market is likely open with a downward gap on Monday on the back of worries about a possible resignation of the Italian prime minister, coupled with a setback on the oil market, analysts said.

“A downward correction is possible today in the start of the trade due to a worldwide decrease of risk taking readiness after an announcement of an outcome of a constitutional referendum in Italy, the majority voted against the reforms, after which Italian Prime Minister Matteo Renzi voiced a decision to resign, ” Anton Startsev, senior analyst at investment company Olma, said.

The commodities market is also cooling down after a wave of post-OPEC decision enthusiasm, which will also likely make Russian assets sag in the morning, Startsev said.

U.S. stock market futures are in the red zone, as well as the key Asian indices. The European trading session premarket is signaling an opening with a downward gap. Oleg Shagov, head of investment company Solid’s analytical department said that all these factors are making for a moderately negative background during the opening of the Russian trading session.

Timur Nigmatullin, an analyst at investment company Finam, said that a recent statement by Chairwoman of the Russian central bank Elvira Nabiullina that its monetary policy will remain strict for about a year and a half is disappointing for Russian investors and will influence the market on Monday.

Shagov said that the MICEX will likely open at 2.125 and will continue to fluctuate near that level.

Russian investors will pay attention to speeches of U.S. Federal Reserve System officials William Dudley, Charles Evans, James Bullard, and also to a speech by President of Bundesbank and a member of the executive board of the European Central Bank Jens Weidmann later on Monday, he said.

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