Russian stocks seen growing on fading COVID-19 worry, likely oil deal
MOSCOW, Apr 6 (PRIME) -- The Russian stock market will likely edge up at opening on Monday because the speed of the COVID-19 spread has started to decrease, while Russia and Saudi Arabia will likely strike an oil output reduction deal on Thursday, analysts said.
"Continuation of the RTS index increase is possible today at the start of trade on the back of abating fears caused by the spread of coronavirus, the statements about a lesser death toll from the COVID-19 among the patients in New York (and several countries of the euro zone, including Italy, Spain, France) have influenced the mood of global traders," Olma senior analyst Anton Startsev said.
The Brent price rose by 15.73% to U.S. $34.65 on April 3. Sergei Drozdov, analyst at investment company Finam, said that on Monday, the attention of market will be drawn to the statements about a meeting of the participants of the OPEC plus deal scheduled for Thursday.
"The market is waiting for global oil producers to reduce production by 10 million barrels per day. According to preliminary data, Saudi Arabia, Russia and the countries of the cartel do not mind this step. But whether the U.S. will join the new deal is the key suspense which can cool enthusiasm of the bulls for some time," Drozdov said.
Drozdov said that the local support levels of the MOEX Russia Index are 2,550 and 2,490, the resistance one is 2,610. The local RTS Index support levels are 1,030 and 1,000, the key resistance is 1,064.