Russian stocks to fall as oil sinks, Washington extends sanctions

MOSCOW, Mar 4 (PRIME) -- The Russian stock market will edge down at the Wednesday’s opening because oil prices pared growth and the U.S. prolonged the sanctions introduced against Moscow a year ago for another year, analysts said.

“Today, at the start of the trade, the increase which began yesterday may stop on the back of an unclear oil price dynamics. The U.S. sanctions’ prolongation against Russian companies for one year is also an unfavorable factor for the market,” Olma’s senior analyst Anton Startsev said.

Brent fell 0.49% to U.S. $60.72 per barrel at 9.11 a.m., Moscow time on Wednesday.

Late Tuesday, U.S. President Barack Obama prolonged sanctions against Russian companies by one more year because Russia is still a threat to the U.S. national security.

The Russian market is overbought, and in the evening, profit taking may start, Vitaly Manzhos, analyst at Nord Capital, said.

Investors will pay attention to the euro zone Services purchasing managers’ index (PMI), and to the U.S. ADP employment report.

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