Russian stocks seen falling on decreasing oil prices, Asian mkts

MOSCOW, Nov 20 (PRIME) -- The Russian stock market will likely open lower on Wednesday on the back of falling oil prices and Asian markets, analysts said.

“A local deterioration of moods on the global markets and correction of oil quotations can bar further recovery of the MOEX Russia Index, so we set the basic scenario guidance in the middle of a 2,900–2,950 range,” Mikhail Poddubsky, senior analyst at Promsvyazbank, said.

Poddubsky said that the Asian markets mainly fell on a statement by U.S. President Donald Trump that the U.S. would raise the import duties for China if the first stage of a trade agreement was not signed.

Besides, the U.S. Senate passed a bill on human rights in Hong Kong, stipulating that the state secretary must present reports to the Congress annually on whether Hong Kong remained autonomous enough to qualify for preferences in trade with the U.S. Poddubsky said that this event could deteriorate the U.S.–China relations even more.

Drozdov said that the support level for the MOEX Russia Index stands at 2,915 and 2,900. The resistance notch is 2,950. The local support level for the RTS index stands at 1,430 and 1,410, and resistance at 1,452.

Poddubsky said that the second half of the week will be richer for events as the U.S. Federal Reserve System (Fed) will publish the minutes of the last meeting on Wednesday, the European Central Bank on Thursday, preliminary data of business activity of the E.U. and the U.S. is scheduled to be published on Friday.

On Wednesday, Russian pipe maker TMK and payment service operator Qiwi are to publish their financials under International Financial Reporting Standards (IFRS) for July–September, which will be the key corporate events.

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