Russian stocks may fall on low oil price, global floors decline

MOSCOW, Jul 5 (PRIME) -- Russian stocks may decrease at the opening on Tuesday on the back of falling oil prices, a negative foreign background, and low trading activity amid uncertainty over the U.K., analysts said.

“We expect the Russian stock market to open at around 1,905 at the MICEX, assuming that in case of further deterioration of a foreign background this stock indicator may see correction and again decrease below the psychologically important level of 1,900,” Oleg Shagov, head of investment company Solid’s research department, said.

The influence of the key factors that have a significant impact on the behavior of the Russian stock market is moderately negative at the beginning of the day, Shagov said. Brent oil futures have again fallen below the psychologically important level of U.S. $50 per barrel on fears of growth of excessive oil supplies caused by reports about an increased oil output by OPEC states in June.

The U.S. stock index futures are suffering losses, and main Asian stock indicators are mostly demonstrating negative dynamics, Shagov said.

“Some downward correction is possible today at the start of trading,” Olma senior analyst Anton Startsev said. “Traders’ activity on markets (including commodities) has fallen, and this is connected not only with yesterday’s day off in the U.S., but with remaining uncertainty about the U.K.,” the analyst said.

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