Russian stocks seen neutral on oil price recovery, flat US futures

MOSCOW, Jul 7 (PRIME) -- The Russian stock market will likely open with marginal changes on Wednesday on the back of recovery of oil prices and neutral U.S. stock market futures, analysts said.

"We expect opening of MOEX Russia Index with a moderate change of 0.1–0.3% in the range of 3,870–3,895. The levels of 3,860 and 3,850 will be the closest support while 3,900 and 3,920 will be significant resistance," Algo Capital senior risk manager Vitaly Manzhos said.

He said that after opening  nearly flat the Russian market will start consolidation.

Alor Broker senior analyst Alexei Antonov said that the external background in the morning is weakly positive as the U.S. stock market futures trade unchanged, the metals prices grow and oil is trying to recover.

The MOEX Russia Index sees a big risk of a small correction because there are no serious growth drivers, the analyst said.

According to Antonov, oil is to restart growth because if Iran does not reemerge as an exporter, the market can consume higher production even if OPEC+ agrees with the United Arab Emirates to raise the production quota. Oil is still to reach U.S. $80 per barrel.

End %%mk/jst%%