Russian stocks may fall at opening amid discouraging environment

MOSCOW, Jul 14 (PRIME) -- The Russian stock market can open lower on Wednesday due to a moderately negative foreign environment, analysts said.

“Mixed dynamics are possible. The U.S. marker will follow reports of the largest banks. Auctions on OFZ government bonds will be in focus in Russia. The central bank is to raise the key interest rate with a 100% possibility, but the Finance Ministry will offer classic state bonds,” Grigory Vashchenko, director of the Russian stocks operations department at investment company Freedom Finance, said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, expects the MOEX Russia Index to open 0.5–1% lower within the range of 3,840–3,860 in light of a moderately negative external background with main U.S. indices futures falling by around 0.2%, gold adding 0.2%, and Asian markets trading 0.3–0.5% lower.

Vashchenko also said that the crude segment prevents the local market from correction thanks to the Brent oil price again jumping close to U.S. $76 per barrels despite the International Energy Agency’s doubts about fast consumption recovery.

Veles Broker analyst Yelena Kozhukhova sees the guidance for the MOEX Russia Index trading range on Wednesday at 3,840–3,930.

She also said that the market will be influenced by a report of U.S. Federal Reserve Chair Jerome Powell on the regulator’s monetary policy.

In Russia, investors may also be interested in a release of operating results for April–June by integrated steel producer Magnitogorsk Iron and Steel Works (MMK).

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