Russian stocks can fall as crude drops, foreign background worsens

MOSCOW, May 31 (PRIME) -- The Russian stock market is likely to open lower on Wednesday in light of persisting pressure of the energy market and a generally discouraging global environment, analysts said.

“Pressure will persist on the Russian market today, which can cause a further correction movement. The nearest support line is seen at April’s highest level of 2,650,” senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.

The market is discouraged by significant worsening of the energy market environment with the nearest Brent oil futures falling below the lower bracket of the $75–80 per barrel range so a part of investors in Russia tend to take profit from long positions, he also said.

Zvarich sees the external background as negative with the main Asian bourses falling by 1.6%, and the core U.S. indices futures losing 0.4%. The Brent oil price is trading at $73.5 per barrel.

BitRiver financial analyst Vladislav Antonov said that the ruble’s position can worsen if the Brent oil price reaches $72 per barrel. But if U.S. Congress approves the bill on a new state debt ceiling, it will become a good signal to the market and will soften the situation.

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