Russian stocks to fall on Chinese stocks fall, Iran uncertainty
MOSCOW, Jul 8 (PRIME) -- The slump of the Russian stock market will deepen at Wednesday’s opening as investors share worldwide worries about the Chinese stock market plummet, and oil prices are very volatile on the Iranian nuclear deal uncertainty, analysts said.
“The influence of the key external factors on the Russian stock market is moderately negative today at the start of the day,” Oleg Shagov, senior analyst at investment company Solid, said.
Both the U.S. stocks futures and the key Asian indices are demonstrating a negative dynamics, and the Chinese stock market continues to plummet sending shivers through the market, analysts said.
The deadline of nuclear pact negotiations with Iran has been postponed, and oil prices are very volatile, Shagov said.
Brent fell 0.58% to U.S. $56.52 per barrel as of 9.05 a.m., Moscow time on Wednesday.
Oil and gas companies will underperform the market, while the banking sector will be slightly ahead of other stocks, Vasily Oleinik, an analyst at ITInvest, said.
The MICEX is close to a technical support notch of 1,600, and the RTS is moving to the target of 800, Oleinik said.
Russian investors will monitor the news on the Greek crisis, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said. The E.U. has set a Sunday deadline for Greece to come to terms with creditors or leave the euro zone, returning to the drachma. Greece must also repay its debt to the European Central Bank until July 20.
Russia is waiting for the release of weekly inflation statistics – it can accelerate sharply – for U.S. oil reserve figures, and Russian investors are also looking forward to see the U.S. Federal Reserve System protocol which will be released later Wednesday, Shagov said.
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