Russian stocks to decline at opening as global environment worsens

MOSCOW, Jul 30 (PRIME) -- The Russian stock market can open around 0.5% lower on Friday in light of a worsened external background with deflating oil prices and falling U.S. and Asian benchmarks, analysts said.

“The external background has worsened significantly in the morning so it is the time for correction (on the Russian stock market)… We expect a decline at the opening,” Alor Broker analyst Alexei Antonov said.

The main U.S. indices futures fell around 0.5%, and crude prices lost 1%, he also said, adding that he sees no reasons for a further rise in oil prices.

Otkritie Broker analyst Andrei Kochetkov said that the Russian stock market can open around 0.5% lower due to the deteriorating global foreign background.

He added that Asian markets are seen lower with Japanese investors worrying about growth of new COVID-19 cases, and Chinese investors concerned about new government measures against the IT sector.

Investors in Russia will also follow publication of financial results for April–June by VTB Bank, air carrier Aeroflot, and power company Mosenergo among other corporate events.

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