Russian stocks to rise as environment improves, oil price grows

MOSCOW, Dec 27 (PRIME) -- The Russian stock market is likely to start Tuesday’s trade higher on the back of improvements in the external background and rising oil prices, analysts said.

“We expect trading in Russia to start with an increase of 0.2–1.0% of the MOEX Russia Index in the range of 2,145–2,160. The levels of 2,140 and 2,120 will act as the closest support, while 2,170 and 2,190 will become the resistance. A noticeable improvement of the external background creates conditions for a positive opening of the MOEX Russia Index,” Algo Capital senior risk manager Vitaly Manzhos said.

The futures for the U.S. stock indices rose by 0.5–0.8% on Tuesday morning, the Brent oil price gained 1%, and the futures for the gold rose by 0.5%. The Chinese index Shanghai Composite grew by 0.9%, and the Japanese index Nikkei225 increased by 0.8%, Manzhos said.

BitRiver financial analyst Vladislav Antonov said that volatility on the currency market remained low, while the Russian stock market depends on oil prices and the U.S. dollar.

Promsvyazbank managing expert Yekaterina Krylova said that the oil prices might receive more momentum for growth as snowstorms in the U.S. suspended 2 million barrels a day of oil refining capacities, while China continues to open doors in spite of a rapid growth of new coronavirus cases.

But Antonov also said that taking into account that the long New Year holidays are coming up, one could expect the Russian market to continue consolidation around the current levels.

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