Russian stocks may sink as oil price, foreign markets decrease

MOSCOW, Feb 3 (PRIME) -- Russian stocks may open with a downward gap on Wednesday because oil prices fell beyond a threshold of U.S. $33 per barrel, and foreign markets are mostly sliding, analysts said.

“Continuation of the black gold quotations fall exerts pressure on Russian stock indices. Today, the decline of indices can continue on the back of negative dynamics of global markets but changes in the dynamics during the day are not ruled out,” UFS IC analyst Alexei Kozlov said.

Brent price fell beyond $33 as OPEC reported an output growth, the U.S. oil reserves increased and Iran pledged to raise exports, Oleg Shagov, head of investment company’s Solid analytical department, said.

Brent fell 0.49% to $32.56 per barrel as of 8:46 a.m. Moscow time.

The majority of Asian indices and U.S. stock market futures demonstrate negative dynamics and it make the foreign background for the Russian trading session start negative as well, Shagov said.

The risks of a protracted downward correction at U.S. the stock market “triggers an increase in nervousness on stock markets in general,” Olma senior analyst Anton Startsev said.

The floating ruble rate will limit the impact of the oil market selloff on the MICEX but an up to 1% downward gap is possible on Wednesday, Finam analyst Timur Nigmatullin said. The RTS is expected to deepen its downward trend, Startsev said.

The U.S. and Europe will release business activity data later in the day. The U.S. will also post oil and oil product reserves figures, all this information will be in the focus of attention of Russian market participants, Shagov said.

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