Russian stocks seen falling after hawkish US Fed comments
MOSCOW, Sep 23 (PRIME) -- The Russian stock market will likely open with a downward gap on Friday, following the global trend, after officials of the U.S. Federal Reserve System (Fed) made signals for tough monetary policies, analysts said.
"Speaking about the moods on global markets on Friday in the morning, they can be characterized as negative. In Asia, the leading trading floors are losing up to 1.7%, the key U.S. stocks indices futures are consolidating below the level of yesterday's closure. The nearest Brent futures are falling 0.3% trading at U.S. $90.2 per barrel," Bogdan Zvarich, senior analyst at financial platform Banki.ru, said.
The analyst said that the U.S. key rate growth by 75 basis points and a quite hawkish rhetoric of the Fed signaling the readiness to raise the rate beyond 4% and keep it at high levels for a long time are raising the risks of recession in the U.S. and of a worse corporate performance. As a result, investors are cutting the share of risky assets in their portfolios and raising the protective asset one.
PSB Bank’s senior analyst Vladimir Solovyov said that later in the day, investors will pay attention to the purchasing managers' index (PMI) in Europe and the U.S. If the figures indicate a deterioration of business activity, the decrease on global markets may get an additional impulse.