Russian stocks to slide as Greeks vote against austerity steps

MOSCOW, Jul 6 (PRIME) -- The Russian stock market will continue its decline at the opening of the Monday’s trading session on the back of global pessimism over Greece’s decision to turn down an austerity measures, analysts said.

“I expect to see a negative opening of the Russian stock market and I assume that the MICEX can fall to record lows for the last three months,” Oleg Shagov, head of analytical department at investment company Solid, said.

At a referendum on July 5, Greeks dismissed the conditions of a bailout proposal of international creditors, which may push it out of the euro zone. European leaders have already started negotiations on the Greek issue and on Tuesday, there will be an emergency summit.

Asian markets and futures for E.U. and U.S. stocks are witnessing a negative dynamics, shaping a decrease of Russian stocks, Promsvyazbank said in a research note.

Russian investors used to ignore the Greek troubles largely but now all market participants flee risky assets, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

Brent fell 1.24% to U.S. $59.57 per barrel at 8.53 a.m., Moscow time on Monday, also a clearly negative sign for Russian investors, Denis Khripushin, analyst at 2trade.ru, said.

Later this week, traders across the globe will be waiting the U.S. Federal Reserve System (Fed) to release the protocol of the last meeting to find indications on when the monetary policy becomes stricter, Shagov said.

End