Russian stocks can fall on global inflation acceleration fears

MOSCOW, Mar 5 (PRIME) -- The Russian stock market may edge down at opening on Friday as acceleration of inflation in many countries triggers fears that the central banks will raise the key rates, analysts said.

"On Friday, March 5, the Russian stock market will probably start the session with a moderate decline as the anti-risk mood prevails on the global stock markets. Investor worries are connected with the situation on the state debt markets of the leading countries, where the yields started to rise after some stabilization," Finam analyst Igor Dodonov said.

He said that inflation is soaring in the world, which could force the central banks to boost the key rates. Alor Broker senior analyst Alexei Antonov said that what global investors fear most is the U.S. Federal Reserve System key rate growth.

After opening lower, the Russian market will likely consolidate, supported by high oil prices but pressurized by sanctions risks, Dodonov said. He added that according to media reports, the U.S. and the U.K. are preparing new sanctions against Moscow for the alleged continuation of the use of chemical weapons.

The Asian markets mainly fell in the morning with the Nikkei 225 losing 0.07%, the Hang Seng 0.62%, the CSI 300 0.54%. The U.S. S&P 500 slipped 0.18%. But the Brent futures for April grew by 0.82% to U.S. $67.29 per barrel, and the WTI firmed by 0.78% to $64.33.

Antonov said that a weak ruble will support the Russian market. The ruble dove to 75 against the U.S. dollar on reports about future sanctions.

He said that Norilsk Nickel continued falling, pressurized by declining nickel prices and environment issues. The company is to release forecasts of the outcomes of the mine floods on March 9.

Sberbank will likely lead the market on the news that it plans to pay the same dividends as in 2020, which slightly exceeds market expectations, the analyst said.

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