Russian stocks seen falling on foreign mkts, oil price decrease

MOSCOW, Sep 21 (PRIME) -- The Russian stock market will likely open with a downward gap on Monday because foreign markets and oil prices were retrenching at the start of the day, analysts said.

"The continuation of consolidation of the RTS Index remains a valid scenario for the short term, The activity of investors on stock markets is limited due to risks of the spread of COVID-19 and a possible need to strengthen the restrictive measures in some countries," Olma senior analyst Anton Startsev said.

The analyst said that a report by the International Consortium of Investigative Journalists, released last weekend and concerning large banks can affect the trends on Western markets.

Promsvyazbank chief analyst Bogdan Zvarich said that the risks of deterioration of the situation in the global economy remain as the number of people contracting the disease surged in several European countries, which might signal the start of the second wave of the coronavirus. The introduction of quarantine restrictions might lead to a negative reassessment of the economic dynamics.

But the news about the development of vaccine against the virus by various companies will support the market, he said.

The relations between the U.S. and China might affect global assets negatively, and investors might reassess the possibility of resurgence of the trade conflict between the countries, the analyst said.

He said that the market moods were moderately negative on Monday in the morning as Asian stock markets were mainly falling, U.S. stocks futures lost up to 0.7% and Brent receded lower than U.S. $43.

According to Zvarich, market participants will pay attention to a speech by Chairman of the U.S. Federal Reserve System (Fed) Jerome Powell on Monday.

Zvarich put the MOEX Russia Index estimate in the range of 2,900–2,950.    

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