Russian stocks may fall on negative environment, low oil price

MOSCOW, Jul 2 (PRIME) -- The Russian stock market is likely to edge down at opening and consolidate during the day on Monday pressured by declining oil prices and a negative foreign background, analysts said.

“We expect the MOEX Russia Index to open considerably lower, by around 0.5%, within a 2,280–2,285 range. In the first minutes of trade, the benchmark is likely to price in evident worsening of the external background. The index may consolidate later in the day awaiting new substantial external signals,” Vitaly Manzhos, senior risk manager at investment company Nord Capital, said.

The U.S. indices futures are seen falling unevenly, he added.

Olma senior analyst Anton Startsev said that the RTS index may also correct down due to an unfavorable global environment.

He also said that crude prices have dropped by more than 1% after negotiations between U.S. President Donald Trump and Saudi Arabia’s king where Trumped asked to boost oil production by 2 million barrels per day. The king answered that his country has such a possibility and may raise output if necessary.

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