Russian stocks may decrease dragged by falling oil prices

MOSCOW, Feb 3 (PRIME) -- Russian stocks may drop at the opening on Monday dragged by oil prices decreasing amid China’s falling demand for oil over coronavirus, analysts said.

“The beginning of the week for the markets will be negative. Russian indices risk continuing decline amid falling oil prices,” Otkritie Broker analyst Andrei Kochetkov said.

Olma senior analyst Anton Startsev said oil quotations are pressured by reports about China’s demand for oil falling 20% due to coronavirus.

The U.S. stock indices fell 1.6–1.1%, the U.S. stock index futures are growing, European indices closed in minus, and Asian indices are showing mixed dynamics, the analyst said.

“Suspension of downward correction on the RTS index is possible today at the start of trading – China’s central bank supported liquidity by lowering 7- and 14-day repo rates, which helps to stabilize the situation on Asian stock exchanges, which have become a source of increased volatility recently,” Startsev said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, expects the Russian stock market to fall around 0.2–0.4% in the range of 3,065–3,070 amid falling oil prices.

End