Russian stocks may fall as stalled US debt talks cause oil price drop
MOSCOW, May 22 (PRIME) -- The Russian stock market will likely decrease on Monday in the morning, because the oil prices are under a pressure of a suspension of the U.S. state debt negotiations, analysts said.
"The shares may experience a certain pressure today at the start of the trade due to a deterioration of the fuel market situation. As a result, the MOEX Russia Index may descend to the range of 2,600–2,620 during the session," senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.
BitRiver financial analyst Vladislav Antonov said that the Brent price decreased 0.24% to U.S. $75.76 after the U.S. announced a suspension of the debt threshold negotiations weakening an optimism regarding the possibility of a deal allowing to escape a default.
On Monday, during the session in Asia, the Brent sank even further to $74.96.
According to Zvarich, the foreign market moods are mixed in the morning, as the leading Asian trading floors are adding up to 0.8%, except the Chinese market retrenching 0.1%. The key U.S. markets' futures are declining by up to 0.1%. A wide range of risky assets are under a pressure of the stalled U.S. debt talks, he said.