Stocks: Short-Term Target Hit, Further Downside Ahead

August 2008 | Market Strategy

The benchmark Russian RTS equity index has hit our short-term downside target of 1,870, at one point trading at 1,836 on August 5. Having breached a short term support level at 1,870, we believe continued losses toward 1,725 are likely. We expect energy, energy transit and energy derivative firms to continue leading the bear-run going forward, linked to our negative short-term outlook on global commodity prices. Indeed, on a technical basis none of the Russian energy majors is looking particularly healthy on a near-term basis. Currently trading at US$80.00, oil giant

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