Russian stocks can grow as US Fed Chair speech relieves fears

MOSCOW, Jan 12 (PRIME) -- The Russian stock market will likely edge up at opening on Wednesday after the chairman of the U.S. Federal Reserve System (Fed) ruled out the most feared scenarios of policy toughening, analysts said.  

Mikhail Kogan, senior analyst at Higher School of Financial Management, said that investors felt more optimistic after a speech by Fed head Jerome Powell, who warned of a forthcoming curtailing of the stimuli but assured that toughening of the policies would not be as severe as many market players think.

Kogan said that besides the oil prices reached a 2-month maximum of U.S. $84 on Tuesday, which continues to support the markets. 

"Taking into account the morning mood improvement in Asia, the external background before the Russian morning session can be characterized as moderately positive," Vitaly Manzhos, senior risk manager at Algo Capital, said.

Manzhos estimated the morning rise at 0.1–0.5% of the iMOEX2 index, and further trading range at 3,805–3,825. The levels of 3,800 and 3,780 are seen as the closest support, and 3,830 and 3,850 as resistance.

The Shanghai Composite grew by 0.2%, the Nikkei225 increased by 1.9%. The U.S. stock market futures and the Brent prices demonstrated marginal dynamics, which, according to Manzhos, will cause an increase at the start of the session with later consolidation.

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