Russian stocks may drop in line with oil prices, global floors

MOSCOW, Oct 26 (PRIME) -- Russian stocks are projected to decrease at the opening on Monday dragged by a decline in oil prices and falling global floors, analysts said.

“We expect the MOEX Russia Index to open with a decrease of 0.4–1%, in the range of 2,790–2,805 points. The nearest support levels will be 2,780 and 2,770 points. The main resistance will be at 2,820 and 2,830 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 0.4–0.6%, Brent oil futures lost 1.9%, China’s Shanghai Composite edged down by 1%, and Japan’s Nikkei225 lost 0.1%, Manzhos said.

Olma senior analyst Anton Startsev said, “The outlined growth of the RTS index may stop at the beginning of trading today under pressure from the external background. Risks associated with the accelerated growth in the number of COVID-19 infections in individual countries, and the uncertainty ahead of the U.S. elections have a negative impact on demand on stock markets, as well as on the expectations of traders on the energy market – Brent oil futures have returned to U.S. $41 per barrel.”

End