Russian stocks can open flat as US FOMC meeting looms
MOSCOW, Jul 27 (PRIME) -- The Russian stock market will likely open with marginal changes on Wednesday because investors are waiting for statements from a meeting of the U.S. Federal Open Market Committee (FOMC), analysts said.
“Reports about large-scale economic stimuli in Japan (the prime minister announced a U.S. $265 billion plan, almost a half of which is represented by fiscal measures) can favor a halt in downward correction on emerging stock markets, including Russia,” Anton Startsev, a senior analyst at investment company Olma, said.
“But a noticeable increase during the day seems improbable, traders will prefer to see the outcome of the FOMC meeting today in the evening (after the Moscow Exchange’s main trading session closes).”
Brent prices are rising slowly to U.S. $45 as investors are waiting for a release of the U.S. oil reserves and output statistics. The U.S. stock market futures are edging up, the key Asian markets are showing mixed dynamics, the European premarket signals a small growth during the session start. All these factors will shape a neutral market opening in Russia, Oleg Shagov, head of investment company Solid research department, said.
The MICEX will likely open at about 1,940 and could try to break resistance of 1,950 later in the day, Shagov said.
Mobile operator MegaFon, Novolipetsk Steel (NLMK) and gas producer Novatek will publish financial results on Wednesday, which can be important for the market in general, as well as for stocks of individual companies, Shagov said.
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