Stocks to rise as virus fears abate, mkt waits for oil output cut

MOSCOW, Apr 7 (PRIME) -- The Russian stocks are likely to open higher on Tuesday as the appearance of new cases of the COVID-19 disease slowed down in the countries hit most by the epidemic, while the oil prices rise on expectations of a new oil output reduction deal, analysts said.

“Today the RTS index is likely to continue rising under the influence of the external background. The investor mood on the international stock markets is optimistic thanks to easing concern about the COVID-19 pandemic. Not a single death because of the coronavirus has been registered in China for the first time since January, and the appearance of new patients in Italy, Spain, and France are slowing down,” investment company Olma’s senior analyst Anton Startsev.

Sergei Drozdov, analyst at investment company Finam, said that New York’s Governor Andrew Cuomo said that the amount of hospitalizations contracted, meaning that the amount of infected people may have reached its peak. The news pushed the U.S. indices 7–7.7% higher on Monday, he said.

Bogdan Zvarich, senior analyst at Promsvyazbank, said that the oil prices will also support the Russian market and the Russian ruble in the morning.

The Brent oil price gained 2.965% to U.S. 34.06 per barrel as of 9.00 a.m. Moscow time, according to the ICE exchange.

Capital Economics quoted by Reuters said that the oil prices are rising as market players expect a new oil output reduction deal.

“Despite the prospect of a massive Saudi Arabian-led production cut, the price of oil has remained low in recent weeks amid a coronavirus-related collapse in demand. We expect energy prices to hover around the current levels until economic activity recovers,” the research note of Capital Economics read as quoted by Reuters.

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