Russian stocks seen falling as oil prices decrease
MOSCOW, Jul 21 (PRIME) -- The Russian stock market will likely fall on Wednesday in the morning following a decreasing oil market, analysts said.
"We expect opening of the MOEX Russia Index with a moderate decrease of 0.1–0.3% at about 3,690–3,700. The levels of 3.680, 3,660 will be the closest support. The levels of 3,720 and 3,740 will be significant resistance," Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.
"The MOEX Russia Index will reflect some deterioration of the market moods in the morning in the first minutes of trade. It will stabilize later near the closest important level of 3,700."
Brent fell by about 0.6% in the morning, the U.S. stock market futures lost 0.2%. the gold futures decreased by 0.2%, which creates a negative background for the opening of the session in Moscow, he said.
Andrei Kochetkov, chief analyst for global research at Otkritie Broker, said that a strong U.S. dollar and the risks of return of economic and social restrictions pressure the medium-term oil demand forecasts. Besides, the American Petroleum Institute (API) said that the U.S. commercial oil reserves rose by 806,000 barrels on the week ending on July 16.
He said that weakness of the industrial metal contracts can also pressure the Russian market.
Investors will wait for a release of U.S. oil statistics by the Energy Department. In Russia, investors will focus on the hearing of an antitrust case against Yandex and dividend recommendation of Magnitogorsk Iron and Steel Works (MMK).
End %%mk/jst%%