Russian stocks can fall on oil price, foreign markets slide

MOSCOW, Sep 9 (PRIME) -- The Russian stock market will likely open with a downward gap on Wednesday on the back of a decline of oil prices and foreign stock market indices, analysts said.

"The external background remains comparably unfavorable at the start of trade: Brent oil futures trade below the psychologically important threshold of U.S. $40 per barrel, the optimistic expectations of stock market traders were dashed after tests of a COVID-19 vaccine by AstraZeneca were suspended after one of the patients developed an adverse reaction," Olma senior analyst Anton Startsev said.

Finam analyst Alexei Korenev said that the foreign markets correct downwards because recovery of the producing sector of the national economies after the pandemic lags behind a recent surge on the markets.

The Western markets slumped on Tuesday under the weight of continuing trade tensions between the U.S. and China, he said. The Asian markets started Wednesday in the red zone.

Brent fell 0.38% to $39.63 per barrel as of 9:18 a.m., Moscow time, on Wednesday.

According to Korenev, the market will focus on the release of Russia’s gross domestic product (GDP) figures for April–June. The market expects it to fall by 1.6–8.5%.

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