Russian stocks may grow on rising oil, Chinese stimuli hopes

MOSCOW, Apr 11 (PRIME) -- Russian stocks are likely to increase on Monday in the morning because of rising oil prices and the Chinese inflation undershooting the forecasts, which signals a room for further monetary stimuli, analysts said.

“We are expecting a positive session’s opening on the Russian stock exchange. Growth on the commodities market will be the main reason for purchases of Russian securities, Brent oil has ascended to a level of U.S. $42 per barrel,” Finam analyst Bogdan Zvarich said.

Oil rose on the back of a reported decrease in the number of U.S. drilling rigs but Asian markets are showing mixed dynamics and the European premarket signals a negative opening of the session, which makes for a mixed background for the Russian trading session start, Oleg Shagov, head of investment company Solid’s research department, said.

The statistics published by China earlier on Monday assumes that the inflation pressure may not bar authorities from monetary stimuli, which has been a bullish sign on Chinese trade floors and may set an upbeat mood in Russia, Olma senior analyst Anton Startsev said.

After a positive start, the market will consolidate as investors will be waiting for an extraordinary meeting of the U.S. Federal Reserve System’s board of directors, Zvarich said.

Fertilizer producer Uralkali will publish the financial report for 2015 under International Financial Reporting Standards (IFRS), and retailer Magnit will post the operating data for March, which will be the most important corporate releases countrywide on Monday, Shagov said.

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