Russian stocks may fall on external negativity, weak crude

MOSCOW, Nov 3 (PRIME) -- The Russian stock market may open with a fall on Wednesday, following overall negative global background and poor crude dynamics, analysts said.

“The external background is negative in the morning and calls for stronger selling. The U.S. futures are weakly declining, metals are trading multidirectional, but oil is losing more than one percent, having gone below U.S. $84 per barrel. So we are waiting for the opening of trading in the red zone, after which the fall may intensify,” Alexei Antonov of Alor Broker said.

The analytical team of Algo Capital headed by Vitaly Manzhos expects the Moscow Exchange Index to open with a decline of 0.1–0.5%, in the range of 4,185–4,200, as U.S. stock index futures show a moderate drop of 0.2%, Brent fell in price by 1.0% and gold futures lost 0.4%. In addition, the Chinese stock index Shanghai Composite slid by 0.6% and Japan’s stock market is closed.

“In the first minutes of trading, the MOEX Index is capable of a noticeable decline under the influence of the morning deterioration of the external background. Later, it is likely to consolidate near the opening level,” Manzhos said.

According to Georgy Vashchenko, chief analyst at Freedom Finance, the market is likely to decline in the absence of new growth or correction factors, and the mark of 4,100 points may become the target for the MOEX Index.

Weekly data on changes in oil and oil products reserves from the U.S. Department of Energy at 5.30 p.m. Moscow time, and the results of the scheduled FOMC meeting will be important for Russian traders today, Manzhos said. Also, at 9.00 p.m. Moscow time, the U.S. Federal Reserve will announce its decision on interest rate and later proceed with the press conference on the abovementioned issue.

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