Russian stocks to decline on oil price, US futures fall

MOSCOW, Oct 19 (PRIME) -- The Russian stock market may fall on Monday at the session’s opening because of a decrease of oil prices and U.S. stock market futures, analysts said.

“The influence of the key external factors which significantly affect the behavior of the Russian financial market is slightly negative today in the start of the day,” Oleg Shagov, head of investment company Solid’s analytical department, said.

Brent fell 0.55% to U.S. $50.18 per barrel at 8.55 a.m. Moscow time; U.S. stock market futures are also in the red zone on Monday morning, which are the main negative factors, according to Shagov.

The MICEX will open at 1,715–1,720. The closest support levels will stand at 1,715 and 1,700, while the resistance levels are 1,730–1,745, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The RTS will likely consolidate close to a 900 psychological level, Olma’s senior analyst Anton Startsev said.

The start of the U.S. and European corporate reporting seasons will add volatility to the Russian market in the evening, Shagov said.

After the Russian trading session closing, the European Central Bank will provide public comments after a meeting, the U.S. and China will release statistics. China and the euro zone will post purchasing managers indices (PMI), all of these data will be important for Russian investors on Tuesday in the morning, Startsev said.

Later this week, Russian investors will wait for statements from a technical meeting of OPEC, where Venezuela will propose to consider a new oil drilling strategy which could boost the prices, Shagov said.

End