Russian stocks seen decreasing early on oil price slide

MOSCOW, Nov 2 (PRIME) -- The Russian stock market will likely edge down at opening on Monday on a strong decline of oil prices, analysts said.

"The RTS index correction may deepen further today at the start of trading on the oil and gas securities. Strengthening of the restrictive measures in many European countries gives us reasons to worry about stability of the current supply and demand balance on the fuel market. As a result, the Brent futures are trading 3%  below Friday’s closing," Olma senior analyst Anton Startsev said.

On Monday morning, Brent fell 3.53% to U.S. $36.60 per barrel as of 9:14 p.m., Moscow time.

Otkritie Broker senior analyst Andrei Kochetkov said that the COVID-19 pandemic remains in focus as the profit-oriented European healthcare systems do not cope with the patient inflow and the E.U. is considering financing cross-border patient traffic.

In the U.S. elections, the majority of news outlets forecast victory to the Democratic candidate, but President Donald Trump has cached up lately creating new wariness on the markets, Kochetkov said.   

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said expects the MOEX Russia Index to open with a 0.4–0.8% downward gap at 2,670–2,680. The support levels are 2,660 and 2,650. Resistance is at 2,700 and 2,710.

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