Russian stocks may fall in line with oil price contraction
MOSCOW, Nov 7 (PRIME) -- The Russian stock market may decrease at the start of Tuesday’s trading session undermined by contraction of the oil price and the unfavorable external background, analysts said.
“In Monday, the MOEX Russia Index grew by 1% to about 3,235. Today we expect the sales to prevail in the Russian shares at the start of trade because of the external background in general and withdrawal of the closest futures contract for the Brent oil to the range of $80–85 per barrel,” Bogdan Zvarich, senior analyst at financial marketplace Banki.ru, said.
“Given the circumstances, the MOEX Russia Index may switch into a correctional fall in order to compensate the Monday growth, and may end the upcoming trading session below 3,200.”
Vladislav Antonov, financial analyst at BitRiver, said that the Brent oil price fell to U.S. $84.66 per barrel. The Middle Eastern conflict can cause serious volatility on the oil market, but without it, the market would use technical levels as guidance including the important support level of $84.3 per barrel. The risks of the price falling to $79 until November 20 are still present, he said.
If the MOEX Russia Index falls below 3,185, the probability of a market crash rises to 90%, and the sellers will set their sights to the target of 3,000, Antonov said.
“The background is moderately negative today. The Asian bourses fell, the futures for the S&P 500 index shrank during premarket trading. The oil market moved downwards because investors are pricing in the new facts. The gold price fell to U.S. $1,972 per ounce, and the silver and platinum prices are under control of the bears,” Vladislav Silayev, senior trader at managing company Alfa-Capital, said.
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