Russian stocks may open down following global bourses

MOSCOW, Oct 16 (PRIME) -- Russian stocks may edge down at opening on Tuesday following the global bourses as the oil market provides no strong support for the local stock market, analysts said.

“The Russian stock market is likely to start the Tuesday trade session with a slight fall as it may follow the U.S. stock indices without receiving a solid signal from the global oil market,” Ivan Marchena, analyst at Forex Club group of companies, said.

The major U.S. stock indices finished Monday with a 0.4–0.9% decrease as political tensions in the world intensified, including possible sanctions against Saudi Arabia for the disappearance of reporter Jamal Khashoggi in Turkey, Marchena said, adding that the Asian bourses also showed no common dynamics early in the day.

The Brent oil price gained 0.148% to U.S. $80.90 per barrel as of 9.07 a.m. Moscow time, according to the ICE exchange.

“Consolidation of the RTS Index around 1,150 is possible in the short term. The markets have generally stabilized after last week’s downward correction, but volatility indicators are still above their six-month average, capping the possibility of consistent growth. Moreover, we once again see prerequisites for the growth of U.S. Treasuries’ yields, which may potentially curb demand at the stock markets,” Olma’s senior analyst Anton Startsev said.

During the day, the market will focus on corporate reports, including reports that are to come from Johnson&Johnson, Morgan Stanley, and Goldman Sachs, Startsev added.

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