Russian stocks to drop on falling oil, US–China trade wars

MOSCOW, Jun 19 (PRIME) -- Russian stocks are projected to decrease at the opening on Tuesday amid falling oil prices, negative dynamics on foreign trade floors, and escalating “trade wars” between the U.S. and China, analysts said.

“We expect the MOEX Russia Index to open with a significant decrease of around 0.5%, near the level of 2,210 points,” Vitaly Manzhos, senior risk manager at investment company Nord Capital, said. The nearest support levels will be 2,200 and 2,190 points, while 2,230 and 2,240 points will act as resistance.

The foreign background is negative prior to the Russian opening, Manzhos said. The U.S. stock index futures decreased by up to 1%, Japan’s Nikkei225 lost 1.5%, and Hong Kong’s Hang Seng dropped 2.4%.

Brent oil futures are losing 0.7% on concerns about a possible increase of oil production volumes under the OPEC+ deal.

Olma senior analyst Anton Startsev said that “pressure of sales will likely remain on the stock market at the start of trading today due to intensification of concerns connected with ‘trade wars’ between the U.S. and China.”

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