Russian stocks can fall on disappointing US vaccine news
MOSCOW, May 20 (PRIME) -- The overheated Russian stock market can decrease on Wednesday morning on disappointing reviews of a promising U.S. coronavirus vaccine, analysts said.
"Optimism about a promising vaccine for the COVID-19 by company Moderna gave way to disappointment after experts from STAT News doubted effectiveness of the pharmaceutical," Sergei Drozdov, analyst at investment company Finam, said.
He also said that the Nasdaq announced plans to publish new rules of initial public offering (IPO), including tougher accounting reporting standards, which will make it more difficult for Chinese companies to place shares, and this news coupled with deteriorating China–U.S. relations, also contributed to a downward correction on the Western markets on Tuesday.
Brent decreased 0.46% on Tuesday to U.S. $34.56. Drozdov said that volatility of the futures was caused by WTI expiration and the need to take a pause after an oil price rise. The American Petroleum Institute (API) said that the U.S. oil reserves decreased by a record 4.8 million barrels last week, which will support oil prices on Wednesday. But the U.S. Energy Department is yet to release more precise data, he said.
On Wednesday morning, Brent rose 0.29% to $34.75 as of 9:07 a.m., Moscow time.
Olma senior analyst Anton Startsev said that the RTS index may consolidate due to market uncertainty amid recession of developed economies and domestic factors, such as postponement of dividend payment by Sberbank.
Drozdov put the MOEX Russia Index local support level at 2,580 and 2,640, resistance at 2,720 and 2,740. The RTS local support level is 1,152 and 1,130, resistance at 1,175 and 1,192.