Russian stocks seen down on oil price drop, negative moods

MOSCOW, Apr 3 (PRIME) -- Russian stocks are projected to decrease at the opening on Friday following a major decline of oil prices and negative moods on foreign floors, analysts said.

“We expect the MOEX Russia Index to open with a decrease of 1–2%, in the range of 2,495–2,520 points. The nearest support levels will be 2,490 and 2,470. The main resistance will be at 2,530 and 2,550,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

Before the start of trading in Russia, the U.S. stock index futures are falling by 1.2–1.4%, Brent oil futures dropped by 4.8%, China’s Shanghai Composite fell 0.6%, and Japan’s Nikkei225 edged down by 1%, the analyst said.

Otkritie Broker analyst Andrei Kochetkov said, “The external background before the start of trading in Russia is again negative. This is due to incoming information about a likely transaction by OPEC and other manufacturers.”

“Apparently, (U.S. President) Donald Trump significantly exaggerated the level of consistency and agreement of traditional suppliers. Moreover, a remark about the lack of the U.S. participation can bury a deal in advance. Accordingly, we are waiting for a fall of the Russian market amid disappointment with the prospects of a new oil agreement.”

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