Russian stocks seen decreasing early on falling oil prices
MOSCOW, Jul 25 (PRIME) -- The Russian stock market will likely decline on Monday in the morning on the back of an oil price fall, analysts said.
"Speaking about the global market mood on Monday morning, we can characterize it as moderately negative. The leading Asian floors lost up to 0.8%. The South Korean market is an exception, growing by 0.6%. The futures for the key American indices fell by 0.2%. The nearest Brent futures retrench by 1% to U.S. $97.4 per barrel," senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said.
The new outbreaks of the coronavirus may push the oil prices even further down by worsening investors' consumption expectations, he said. A broad range of risky assets may be under thepressure as well.
According to Zvarich, investors are waiting for a meeting of the U.S. Federal Reserve System (Fed) later this week and expect a key rate increase by 75 basis points to 100 bp. Comments to the decision will be important to understand later activities of the authority.
According to Zvarich, the MOEX Russia Index would likely be under the pressure for the entire session and will fall to 2,050–2,080. A scenario of a deeper decline to 1,950 remains most probable, while consolidation above 2,200 seems unlikely.
Director of BCS Broker’s stock market experts department Vasily Karpunin said that the central bank’s July 22 cut of the key rate has not been fully priced in by the Russian market, which is why a positive impact of the step will remain on Monday.
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