Russian stocks seen falling as US economic support uncertain

MOSCOW, Aug 12 (PRIME) -- The Russian stock market will likely open lower on Wednesday because stalled negotiations on new support for the U.S. economy have made assets of the developing markets less attractive, analysts said.

"A downward correction of the RTS Index is possible today at the start of trade: a higher yield on the U.S. state debt market preconditions a higher yield expected by investors on the developing markets assets," Olma’s senior analyst Anton Startsev said.

Sergei Drozdov, analyst at investment company Finam, said comments by Senate majority leader Mitch McConnell that the negotiations on a new package of stimuli for the U.S. economy were in a dead end pushed the U.S. market down.

Drozdov said that the trend affected the oil market as well with Brent decreasing by 1.04%. But in the morning, Brent grew by 0.45% to U.S. $44.70 as of 8:50 a.m., Moscow time, after the American Petroleum Institute (API) published a weekly decrease of U.S. crude reserves by 4.4 million barrels.

The analyst said that on Wednesday the market will focus on the U.S. Energy Department data and the U.S. stock markets, which will set further oil price dynamics.

Drozdov put the MOEX Russia Index support level at 2,970 and 2,945, resistance at 3,015. The RTS local support level was set at 1,280 and 1,266 and resistance at 1,305.

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