Russian stocks may decline following drop in oil prices

MOSCOW, Dec 23 (PRIME) -- Russian stocks may decrease at the opening on Wednesday amid a drop in oil prices and a mixed foreign background, analysts said.

“We expect the MOEX Russia Index to open with a decrease of 0.2–0.5%, in the range of 3,220–3,230 points. The nearest support levels will be 3,210 and 3,200 points. The main resistance will remain at 3,240 and 3,250 points,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Before the start of trading in Russia, the U.S. stock index futures are falling within 0.1–0.2%, Brent oil futures lost 1.6%, China’s Shanghai Composite added 0.6%, and Japan’s Nikkei225 rose 0.4%.

Olma senior analyst Anton Startsev said, “Technical analysis data leaves the possibility of a downward correction on the RTS index. An unexpected increase in U.S. crude oil reserves has become an additional factor of pressure on oil quotes, Brent futures are trading below U.S. $50 per barrel. In addition, the current U.S. President Donald Trump demanded a revision of the parameters of the bill on fiscal measures to support the economy (the bill was approved by the Congress), which increases the uncertainty for global investors.”

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