MOSCOW, Sep 22 (PRIME) -- Russian stocks are likely to contract on Tuesday morning as all major foreign bourses are falling and are providing no drivers to support purchases on the local market, while contraction of oil prices only adds fuel to the fire, analysts said.
“A downward correction of the RTS Index is likely to deepen at the beginning of the trade today as it would follow foreign indices. At a time when U.S. congressmen have failed to reach the agreement over a new package of economic stimulation measures, the scenario of new restrictions over the pandemic has become more and more material, which hurts the readiness of investors to take risks,” investment company Olma’s senior analyst Anton Startsev said.
U.S. stock indices fell by 0.1–1.8% on Monday, and futures for the indices are in the red zone on Tuesday morning. European bourses fell significantly on Monday, and Asian floors are also in a downward correction, Startsev said.
Bogdan Zvarich, senior analyst at Promsvyazbank, also said that the background for the Russian market was negative at the beginning of the day, and that one of the most serious factors of pressure on the market is the contraction in oil prices.
The Brent oil price lost 0.193% to U.S. $41.36 per barrel as of 8.59 a.m. Moscow time, according to the ICE exchange.
“The week started with active sales on foreign stock exchanges. Central banks have already introduced the main arsenal of stimulation measures which is not enough already to support the mood of investors, and the tax and budget help in the U.S. is behind schedule. Anyway, prospects of worsening of the situation with the virus during autumn makes buyers take their profits,” Yelena Kozhukhova, analyst at Veles Capital, said.
The only way for the trade to become positive on Tuesday is if news breaks out about successful trials of the coronavirus vaccine, Kozhukhova said.
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