Russian stocks may open flat amid wait for later week events

MOSCOW, Jun 1 (PRIME) -- The Russian stock market may see a marginal dynamics at Monday opening because of the stillness of other developing countries’ stocks and because traders will be waiting for meetings of the European Central Bank and OPEC later this week, analysts said.

“It is more probable that the market will remain flat but I cannot rule out resumption of a downward trend,”Andrei Vernikov, Zerich Capital’s deputy CEO, said.

The Brent oil price consolidation at a level above U.S. $65 per barrel and the growth of U.S. stock market futures will trigger a moderate MICEX growth, Oleg Shagov, senior analyst at investment company Solid, said. But, the growth trend for the MICEX has not started yet, he said.

Indices of other developing countries are very likely to be trapped inside a range with a low volatility in June–August, which is why the Russian market trends will also be weak, Vernikov said.

This week will be full of international events which may shake the Russian market short-term dynamics, Vernikov said. Later this week, Greece may sign restructuring of its debt. On Wednesday, the European Central Bank will decide on monetary policies, and on Friday, OPEC will hold a meeting.

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