Russian stocks seen down on negative background, falling oil

MOSCOW, Jul 20 (PRIME) -- Russian stocks may decrease at the opening on Monday amid mostly negative dynamics of global floors and descending oil prices, analysts said.

“Some downward correction on the RTS index is possible today at the beginning of trading, but the external background does not yet give significant grounds for consolidation below the level of 1,200 points, which can be considered the lower border of the current consolidation range. The risks associated with the spread of COVID-19 remain a deterrent for investors, while new measures to support the economy are being discussed in the E.U. and the U.S.,” Olma senior analyst Anton Startsev said.

The U.S. stock indices closed in small minus, the U.S. stock index futures are trading below the level of July 17’s close, European indices closed mixed, and Asian indices are not also showing single dynamics, he said.

Otkritie Broker analyst Andrei Kochetkov said, “The external background before the start of trading in Russia is mostly negative. The failure of European leaders to negotiate an economic support fund creates heightened uncertainty in the region’s economy. Statistics in Asia suggest a possible longer recovery period. The oil market is also experiencing uncertainty amid the return of restrictive measures, both in a number of U.S. states and other countries.”

“The Russian market may start the day in the red, reacting to the weakness of Asian indices and futures for European indices. The ruble will also remain under pressure due to negative background and ongoing repatriation of dividends by non-residents,” he said.

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