Stocks can fall at opening on run for safety, lower oil price

MOSCOW, Sep 5 (PRIME) -- The Russian stock market will likely open lower on Wednesday because of falling oil futures and the lack of investor appetite to risky assets, analysts said.

“Deepening of an RTS index downward correction is possible today at the start of trade,” %,” Anton Startsev, a senior analyst at investment company Olma, said.

“Yields have started to rise again on the U.S. fixed-income market (10-year treasuries are traded with a 2.9% yield) reducing comparative attractiveness of emerging markets which are already under the pressure of worries caused by deterioration of economic conditions. The MSCI EM fell by 0.7% yesterday, weekly losses amounted to 2.7%.”

The U.S. stock market futures fell by up to 0.1%, the Asian markets decreased, the gold futures lost 0.1%, anjd the Brent futures 0.5%.

According to Vitaly Manzhos, a senior risk manager at investment company Algo Capital, these factors will cause an about 0.5% fall in the MOEX Russia Index, which will open at about 2,325. The levels of 2,310 and 2,300 will act as the closest support and of 2,340 and 2,350 as resistance.

According to Mikhail Poddubsky, senior analyst at Promsvyazbank, deterioration of the situation in Syria is also pressurizing Russian assets.

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