Russian stocks may grow as US indices rise on interest rate cut

MOSCOW, Oct 31 (PRIME) -- Russian stocks may grow at the opening on Thursday supported by growth of the U.S. indices amid a reduction of the interest rate, analysts said.

“Today, our market will try to open with growth, winning back the rise of the U.S. indicators after our close. But joining purchases is very risky, as the accumulated overbought will remind of itself. Therefore, it may be better to wait for a small contraction, on which to buy primarily Gazprom, Lukoil and Norilsk Nickel,” Alor Broker analyst Alexei Antonov said.

Olma senior analyst Anton Startsev said the U.S. stock indices rose 0.3–0.4%, the U.S. stock index futures are trading slightly below the levels of Wednesday’s close. European stock indices closed mixed, and Asian indices are slightly growing.

“The technical analysis data retains the possibility of continued growth on the RTS Index. Meanwhile, the external background is somewhat uncertain. The U.S. Federal Reserve, as expected, shifted the target range of the base interest rate by 0.25 percentage points down, but the accompanying comment gave reason to expect a pause in changes in monetary policy,” he added.

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