Russian stocks can fall on oil price, foreign markets’ decrease

MOSCOW, Jul 28 (PRIME) -- The Russian stock market will likely open with a downward gap on Friday because of a drop in oil prices and of foreign stocks, and a possible adoption of new U.S. sanctions can hurt the market additionally, analysts said.

“A certain cooling of the activity of blue chip sector buyers can occur today at the start of the trading session in line with the patterns of trade on global markets (including the oil market). No serious reasons for strong trends in Russian stocks indices have emerged,” Olma senior analyst Anton Startsev said.

Oleg Shagov, head of investment company Solid’s research department, said that the external background for the start of the Russian trading session is moderately negative because Brent oil futures are descending to U.S. $51.4 per barrel as their expiration looms and traders are fleeing to the October ones.

U.S. stock market futures are falling slightly, Asian markets are mostly decreasing and the European premarket signals downward gaps at the start of the session later in the day.

A bill introducing new U.S. sanctions against Russia has been submitted to the president for signing but according to Startsev, even if Donald Trump signs it, the influence on the Russian market will be limited.

Shagov said that the MICEX can open at about 1,940.

A meeting of the Russian central bank, which can reduce the key rate, will be in the focus of investors’ attention, he said.

Operating reports by PhosAgro and O’Key, financial results of Yandex and recommendations by boards of directors of MTS and Novolipetsk Steel (NLMK) are expected to be the main corporate events on Friday, he said.

The U.S. gross domestic product (GDP) will likely be the most important foreign statistics, Shagov said.

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