MOSCOW, Aug 4 (PRIME) -- The Russian stock market will likely open higher on Wednesday because the oil prices stopped falling and the U.S. futures increased, analysts said.
"The morning trading session is shaped by the bulls: the key U.S. indices rose, the oil prices stopped falling," Andrei Vernikov, head of investment analysis department of Investment Group Univer, said.
Vernikov said that half of China's provinces are ravaged by a new wave of COVID-19 and the U.S. contagion rates increased, which will certainly reduce oil consumption. But, suspiciously, as soon as the oil prices started falling, someone captivated an oil tanker near the shore of the United Arab Emirates, a second raid since July 30.
Vitaly Manzhos, senior risk manager at investment company Algo Capital, put the MOEX Russia Index range estimate at 3,780–3,805. The levels of 3,770 and 3,750 are seen as support and of 3,810–3,830 as resistance.
He said that after a modest change in the morning, the market will consolidate. In the second half of the session, the market will focus on the oil futures, the U.S. market opening and an oil reserve report by the Energy Department.
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