Russian stocks seen falling on fears of new coronavirus quarantine

MOSCOW, Jun 15 (PRIME) -- The Russian stock market will likely open lower on Monday as the news about a new coronavirus outbreak in the U.S. made investors wary of another round of quarantine toughening, analysts said. 

"Deeper downward correction of the RTS Index following the global stock market indices is possible today at the start of trade. Worries about the risk of a second wave of the pandemic and the pessimistic forecasts of economic development give us the reason to retreat to defensive assets (a sign of which is a lower 10-year U.S. Treasuries' yield)," Olma senior analyst Anton Startsev said.

According to Sergei Drozdov, analyst at investment company Finam, the U.S. States of Arizona and Oklahoma reported a record growth of the number of contagions, a month after easing of the restrictions, which is why the authorities are thinking about toughening the quarantine again. 

Startsev said that the U.S. stock market slumped on June 11, partially recovered on June 12, but the U.S. futures are still below the June 12 closing.

Promsvyazbank chief analyst Bogdan Zvarich said that the risks of the U.S.–China relations deterioration remain quite high, and a temporary standstill must not deceive investors.

Alor Broker analyst Alexei Antonov said that there are no chances for a V-shape recovery of the global economy, while a W-shaped recovery carries the risk of a deeper second rock bottom.

He said that overbought oil companies are to be the outsiders. Norilsk Nickel can also sag as intent of shareholder Vladimir Potanin to pay no interim dividends was not fully reflected in the share price. 

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