Russian stocks can rise after Biden invites Putin to dialogue

MOSCOW, Apr 14 (PRIME) -- The Russian stock market will likely increase on Wednesday at the start of the trading session after U.S. President Joe Biden called Russian President Vladimir Putin offering to discuss urgent issues, analysts said.

"Joe Biden’s call to Vladimir Putin was the main and surprising event yesterday. One must not see this phone call as a dramatic improvement of Russian–American relations just yet, but the desire of the American side not to escalate confrontation is obvious," Alor Broker senior analyst Alexei Antonov said.

"Besides, the possibility of a combat initiation by the Ukrainian army has declined dramatically. It does not mean at all that the U.S. will not introduce further sanctions but we can say with a great degree of certainty that they will be mild and not harmful to the economy."

Andrei Kochetkov, leading analyst for global research at Otkritie Broker, said that the growing Asian markets and industrial and precious metals will support the Russian market.

According to Antonov, the resistance level for Brent of U.S. $65 will hardly be broken but the current price level is comfortable for the Russian oil sector.

Antonov said that exporters can underperform the market because of a strengthening ruble.

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