Russian stocks may rise on oil price, Asian markets increase
MOSCOW, May 18 (PRIME) -- The Russian stock market will likely open with an upward gap on Wednesday due to the oil price increase and growth of the key Asian markets, analysts said.
"The attempts to continue yesterday's local stock market increase game are not ruled out in the first half of the day. But a further rise may be limited for technical reasons after a strong two-day growth," Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.
Bogdan Zvarich, senior analyst at financial supermarket Banki.ru, said that the background on the foreign markets was moderately positive, as the key Asian indices added about 0.7% except the Chinese market that decreased about 0.1% on coronavirus-related fears. The key U.S. markets futures decreased by up to 0.3%.
The nearest Brent futures recovered 0.8% to about U.S. $112.9 per barrel, after sagging on Tuesday evening, as the American Petroleum Institute (API) reported a decrease of the U.S. reserves, Zvarich said.
He also said that the oil price correction of Tuesday may limit the growth of the Russian market on Wednesday.
Manzhos said that the Russian market may open with an up to 1% gap in the range of 2,400–2,450. The levels of 2,380 and 2,350 are the support ones and the levels of 2,480 and 2,500 the resistance ones.