Russian stocks may fall amid oil prices below $35 per barrel

MOSCOW, Feb 5 (PRIME) -- Russian stocks may decrease at the opening on Friday on the back of oil prices falling below U.S. $35 per barrel and a mixed external background, analysts said.

“We expect the Russian stock market to open at the level of 1,780–1,785 at the MICEX index, assuming that amid mixed foreign conditions this stock indicator will start consolidation around current levels after a wave of growth,” Oleg Shagov, head of investment company’s Solid analytical department, said. On Thursday, the MICEX closed at 1,787.93.

The influence of external factors that have a significant impact on the Russian stock market is mixed today in the morning, Shagov said. Brent oil futures have again fallen below $35 per barrel on the back of doubts that key participants of the oil market will be able to agree on decreasing oil production. Moreover, the European Commission has reduced an estimate of the average Brent oil price in 2016 by 34% to $35.8 per barrel.

The U.S. stock index futures are decreasing, while main Asian stock indicators are not showing single dynamics.

“A growth of the RTS index can be suspended at the start of trading today,” investment company Olma senior analyst Anton Startsev said.

The indices still keep a growth potential, but a small reduction of oil prices will put the Russian market under pressure, UFS IC analyst Alexei Kozlov said.

Oil price changes, the situation on global market floors, and the ruble rate dynamics will remain the key drivers for the Russian stock market, analysts said. Investors will wait for the release of the U.S. unemployment data.

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