Russian stocks can fall slightly on oil price decrease to $55.7

MOSCOW, Oct 4 (PRIME) -- The Russian stock market is likely to fall at the start of the Wednesday’s trading session on the back of an oil price decrease to U.S. $55.7 per barrel, analysts said.

“Taking into account a decrease of oil futures in the morning, the state of the external background before the start of the trade in Russia can be described as moderately unfavorable,” Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said.

U.S. stock market futures were almost neutral on Wednesday in the morning, Brent contracts lost 0.6%, gold futures grew 0.3%, Japan’s Nikkei225 rose 0.2% and Hong Kong’s Hang Seng added 0.8%, Manzhos said.

Manzhos said that the MICEX is expected to open with a 0.2–0.3% downward gap, at 2,070–2,075, the levels of 2,070 and 2,060 are the support ones and the levels of 2,085 and 2,100 will be the resistance ones. The market will likely enter a consolidation phase. A positive dynamics at the closing of the U.S. market on Tuesday can ease the effect of falling oil prices on the Russian market, he said.  

Oleg Shagov, head of the investment company Solid’s research department, said that the intraday dynamics of the Russian market will be formed by global oil price dynamics, Western stock market indicators, fluctuations of the ruble, possible events and macroeconomic statistics.

Business activity data for Russia, Europe and the U.S. will be the most important statistics release on Wednesday, he said.  

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