Russian stocks may open flat as investors wait for ECB meeting

MOSCOW, Jun 4 (PRIME) -- Russian stocks may open flat on Wednesday as investors are likely to refrain from building up further positions waiting for the results of the European Central Bank meeting and in the absence of major news, analysts said.

“We expect the start of the trading session to be neutral and suppose that the MICEX index can hit new three-month records during the session,” Promsvyazbank senior analyst Oleg Shagov said.

The general background prior to the markets’ opening is close to neutral with U.S. futures changing insignificantly, Asian floors showing no unified dynamics and oil prices hovering at around U.S. $108.8 per barrel.

“Today’s agenda is the E.U. service business activity report and revised January-March gross domestic product (GDP) report, which will add finishing touches to the Eurozone’s economic picture ahead of the European Central Bank’s meeting,” Natalya Samoilova, head of Golden Hills capital analytic department, said.

The ECB is to consider its key and depositary rates as the E.U.’s inflation is growing.

“We expect the MICEX to open with insignificant changes in a 1,470-1,475 range. The closest support rates are 1,460 and 1,450. The resistance levels are 1,475 and 1,490,” Nord Capital analyst Vitaly Manzhos said, adding that the U.S. non-business sector sentiment report can also affect investor mood.

Investors will also focus on the service business activity reports released by France, Italy, Germany, the U.K., the E.U. and the U.S., as well as E.U.’s GDP and ADP data release, U.S. labor production and trading balance claims and the Federal Reserve System’s report, Shagov said.

End