Russian stocks may drop amid decline of oil, global floors

MOSCOW, Oct 28 (PRIME) -- Russian stocks may significantly decrease at the opening on Wednesday amid a decline of oil prices and a negative foreign background, analysts said.

“We expect the MOEX Russia Index to open with a decrease within 0.3–0.7%, in the range of 2,745–2,755 points. The nearest support levels will be 2,740 and 2,730 points. The main resistance will be at 2,770 and 2,780 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 0.4–0.7%, Brent oil futures edged down 1.8%, China’s Shanghai Composite rose 0.2%, and Japan’s Nikkei225 lost 0.6%.

Olma senior analyst Anton Startsev said, “The technical analysis data indicates the possibility of deepening the downward correction on the RTS index. The external background does not yet give grounds for the recovery of ‘demand for risk’, the negative influence of the pandemic factor remains (for example, it is reported that the French president intends to appear on television tonight to announce new restrictive measures).”

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