Russian stocks can rise on risk demand growth due to US incentives
MOSCOW, Mar 25 (PRIME) -- The Russian stock market will likely open higher on Wednesday because the risk demand has partially recovered after the U.S. announced measures to support the economy, analysts said.
"Continuation the RTS index increase is possible at the start of trade. It has been announced today in the morning that the U.S. Senate consented to U.S. $2 trillion worth of measures to support the economy," Olma senior analyst Anton Startsev said. He added that demand for risk can grow because of the measures.
Sergei Drozdov, analyst at investment company Finam, said that the U.S. market was also enthusiastic about the stimulating measures offered by the Federal Reserve System.
The oil prices rose by 2.52% on Tuesday, according to Drozdov, after stimulating measures adopted by the global central banks and governments. Worries about declining demand have remained because losses of the world economy from the coronavirus epidemic are yet to be assessed.
Startsev said that China plans to remove quarantine of Wuhan, which also supported the global markets.
Drozdov set the MOEX Russia Index local support level at 2,350 and 2,310, and resistance at 2,500. The local support levels of RTS futures were set at 886 and 850, the resistance level at 1,000 and 1,060.