Russian stocks to ease as Ukraine conflict escalates, ruble falls

MOSCOW, Nov 7 (PRIME) -- Russian stocks are expected to fall at Friday’s opening due to the escalation of the Ukrainian conflict and the weakening ruble, analytics said.

“The global trend of dollar strengthening and falling oil prices may have a negative influence on market’s dynamics,” Promsvyazbank analysts Ilya Frolov and Yevgeny Loktyukhov said in a research note.

“The resumption of hostilities near Donetsk can mean the resumption of sanctions war and may also have a negative impact on the market.”

Moscow Securities Center analyst, Anna Linevskaya forecast that the MICEX index will be trading in a 1,470–1,510 range during the day.

Federica Mogherini, the head of EU’s diplomacy, said late Thursday that E.U. sanctions against Russia may be expanded in the wake of elections in eastern Ukraine. German Chancellor Angela Merkel also said that there is no chance of easing or abandoning sanctions.

The factors, which can reduce the downward trend, include the consolidation of the Brent price around the current level of U.S. $83–87 per barrel and bullish U.S. and E.U stock markets, Platon Maguta, senior manager at Fond Maguta managing company, said.

(44.3993 rubles – U.S. $1)

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