Oil above $40/bbl may push Russian stocks higher at opening

MOSCOW, Apr 7 (PRIME) -- The oil price, which has stabilized above U.S. $40 per barrel, may help Russian stocks to open higher on Thursday, analysts said.

“The influence of key factors that provide significant impact on behavior of the Russian stock market is moderately positive at the beginning of the day. The Brent oil futures once again rose above $40 per barrel due to a significant contraction of oil reserves in the U.S. and a 4-week contraction of oil production in the country,” Oleg Shagov, senior analyst at investment company Solid, said.

U.S. stock index futures are changing insignificantly, Asian floors show no common dynamics, and the European premarket session indicates an upward opening of the stocks, which means that the MICEX may open higher, a 1,865–1,870 range, he said.

“From my point of view, the rise of oil prices and release of the U.S. Federal Reserve System’s minutes will result in an about 1% growth of the MICEX index today in the first half of the day…It is likely that the market will grow more or less smoothly due to a higher demand for risky assets,” Timur Nigmatullin, an analyst at Finam, said.

The Fed’s minutes showed that the regulator is concerned about the world’s financial situation, which creates risks for the future of the U.S. economy, Shagov said.

During the day, investors will track statements of European officials and representatives for the European Central Bank and the U.S. Federal Reserve System. The International Monetary Fund is to publish extracts from its World Economic Outlook report, which is to be published on April 12, Shagov added.

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