Russian stocks can erase gains as oil price, foreign markets fall

MOSCOW, Jun 21 (PRIME) – Overheated Russian stock markets will likely correct downwards on Friday at the start of the trading session due to a decline of oil futures and foreign markets, analysts said.

“Expectations of credit policy softening by the world’s largest central banks remain a factor supporting demand on the global stock markets. At the same time, suspension of growth close to a threshold of 1,400 of the RTS index is not ruled out in the short term (according to technical analysis, some indicators show overheating of the index),” Olma’s senior analyst Anton Startsev said.

Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said that the MOEX Russia Index will likely ease by 0.3–0.4% at opening due to deterioration of the external background.

The U.S. stock market futures fell 0.3–0.6% in the morning, the Brent futures 0.4%, the gold futures added 0.6%. China’s Shanghai Composite rose 0.3%, Japan’s Nikkei225 lost 1.1%.

Finam analyst Sergei Drozdov said that the local support level for the MOEX Russia Index stands at 2,760 and 2,735. The resistance notch is 2,800. The local support level for the RTS Index stands at 1,348 and 1,330, and resistance at 1,376.

Alor Broker analyst Alexei Antonov said that there is no reason for significant sales because the markets will soon reflect expectations from a forthcoming meeting of G20 when the U.S. and China can make positive statements on their trade conflict.

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