Russian stocks may decrease on falling oil prices, US stocks

MOSCOW, Jan 13 (PRIME) -- The Russian stock market may tumble at Tuesday opening because oil prices fell abruptly on Monday in the evening, and there was a moderate decline at U.S. stock floors, while fears that Standard & Poor’s may downgrade Russia’s rating to junk level also leaves no chances for growth, analysts said.

“The Russian stock market will open with decline today. The falling of U.S. stock market indices and of oil quotations on commodities markets will contribute to an up to 1% gap at the trading session opening,” Denis Khripushin, analyst at 2trade.ru, said.

Brent oil price fell 2.05% to U.S. $46.46 per barrel at 9.09 a.m. Moscow time.

In the U.S., the S&P 500 fell 0.81% and the Dow Jones lost 0.54% on Monday.

“There are also big concerns that key U.S. ratings agencies can downgrade Russia’s credit rating once again by one grade, to junk level. Standard & Poor’s may take this step the first among the three key ratings agencies on Friday,” IT Invest analyst Vasily Oleinik said.

For domestic companies Russia’s rating downgrade by two out of the three ratings agencies might mean a need to urgently repay $25 billion–$30 billion debts; and Russia may be removed from international index MSCI, all these risks are bothering investors, Oleinik said.

Metals producers may outperform the market on Tuesday on the back of a solid report released late Monday by Alcoa, Anton Startsev, CFA senior analyst, said.

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