Russian stocks can fall as traders fear US Fed policy tightening

MOSCOW, Aug 22 (PRIME) -- The Russian stock market will likely open lower on Monday because worldwide investors are fearful of tightening of the monetary policy by the U.S. Federal Reserve System (Fed), analysts said.

“A downward correction is possible today at the start of trade due to the effect of the external background. The prospects of a U.S. Fed policy tightening has become a factor influencing the market again: as Vice Chair Stanley Fischer said, the U.S. economy is close to a state in which it would be right to raise the interest rates,” Olma’s senior analyst Anton Startsev said.

Vasily Koposov, head of financial market analysis at KIT Finance Broker, said that the U.S. factor will continue to play the key role on financial markets worldwide this week because a revised gross domestic product of the U.S. will be published on Friday.

Oil prices have consolidated at about U.S. $50 and the growth impulse has faded away, Koposov said.

Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said that the MICEX is expected to decline 0.3% to 1,950–1,940. The levels of 1,950 and 1,940 are also seen as the closest support zone, while the MICEX will likely meet resistance at 1,970 and 1,980.

No important foreign statistics releases are scheduled for Monday, which is why, the Russian market trends will also depend on oil, Manzhos said.

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