Russian stocks can edge down because of weakening crude prices

MOSCOW, Dec 7 (PRIME) -- The Russian stock market is likely to open lower on Wednesday due to discouraging oil price dynamics, analysts said.

“Pressure on Russian shares can persist on Wednesday. The major negative factor is the worsening of crude prices. The local market can be additionally pressured by decreasing appetites for risk of global investors,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

The MOEX Russia Index can continue its negative trend to the 2,160 mark, which has been the past month’s lowest, he added.

Zvarich said that the global background looks negative with the main Asian markets losing up to 0.6%, except for China, which is rising 0.1% thanks to softening of coronavirus restrictions, the core U.S. benchmarks growing 0.2%, and the nearest Brent oil futures trading at around U.S. $79.5 per barrel.

BitRiver financial analyst Vladislav Antonov said that the negative trend of the ruble is to persist due to seasonal factors and traditionally higher demand for foreign currency from both companies and individuals at the end of a year.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, expects the MOEX Russia Index to open with a moderate fall of below 0.8% within the range of 2,180–2,195.

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