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

MOSCOW, May 17 (PRIME) -- The Russian stock market will likely open with a downward gap on Wednesday because of negative dynamics of oil prices and foreign stock market indices, analysts said.

“The ultimate influence of key external factors that have a significant impact on the Russian financial market is moderately negative today at the start of the day in our opinion,” Oleg Shagov, head of investment company Solid’s research department, said.

Brent futures decreased after the American Petroleum Institute (API) posted a surge in oil reserves. U.S. stock market futures are sliding in the morning. Asian markets are mostly falling and the European premarket also signals a downward gap later in the day, which are the factors forming the investor pessimism, he said.

As a result, the MICEX will likely open at 1,990 and can deepen sales if the external background remains negative, Shagov said.

Sergei Kozlovsky, head of the research department of forex broker Grand Capital, said that investors will track the following statistics releases on Wednesday: Russia’s gross domestic product (GDP), the U.S. weekly oil and oil product reserves. The U.K. is to release labor market data and euro zone inflation.

Shagov said that a speech by the central bank’s Chairwoman Elvira Nabiullina will be another important event for the Russian market on Wednesday.

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