Russian stocks seen flat as global markets recover, oil price low
MOSCOW, Dec 2 (PRIME) -- The Russian stock market will likely open with marginal changes on Monday as the global markets are recovering after a fall on November 29 and the oil prices remain low, analysts said.
УWe see the external background as mixed today before the opening: a local mood improvement on the global trading floors can be compensated by a significant correction of oil quotations,Ф Mikhail Poddubsky, senior analyst at Promsvyazbank, said.
Finam analyst Sergei Drozdov said that a report by Bloomberg that Saudi Arabia could say it would refuse to be the only state to balance oil overproduction by the other OPEC plus deal participants any longer at a meeting on ThursdayЦFriday, made oil prices decline by 4% on November 29.
On Monday morning, the Brent price recovered 1.39% to U.S. $61.33 as of 9:00 a.m., Moscow time.
Drozdov said that on November 29, the U.S. investors, returning to the market after Thanksgiving, were disappointed by President Donald Trump signing of a bill on human rights compliance in Hong Kong. Reuters reported that the White House was discussing extending the influence on foreign companies in order to block supplies to ChinaТs Huawei.
Drozdov also said that the main event concerning ChinaЦU.S. relations is yet to take place, as Trump will decide on raising the tariffs on Chinese goods on December 15.
Olma senior analyst Anton Startsev said that the Asian markets recovered as ChinaТs purchasing managersТ index (PMI) turned out to be better than the forecast.
According to Drozdov, the support level for the MOEX Russia Index stands at 2,910 and 2,890. The resistance notch is 2,950. The local support level for the RTS index stands at 1,421 and 1,410, and resistance at 1,450.
Poddubsky said that the Russian reporting season is almost over but presentation of a new dividend policy by Gazprom on Thursday is seen as an important event.