Russian stocks may open flat before large holidays

MOSCOW, May 8 (PRIME) -- The Russian stock market may demonstrate a weak dynamics at Friday opening because investors are unwilling to take risks before a 3-day public holiday in the country, while there are no strong stimuli to either positive or negative dynamics, analysts said.

“The opening of the Russian stock market will see marginal changes as compared with the previous closing. The activity of investors will be lower than usual on the eve of long Russian holidays and publication of important U.S. labor market data,” Oleg Shagov, senior analyst at investment company Solid, said.

On May 11, the Russian bourse will be shut for the long Victory Day holidays.

The U.S. Federal Reserve (Fed) will raise the interest rates early next year, CEO of the Fed of Chicago Charles Evans said Thursday, but the athority might start the changes earlier if something in the economy spurs inflation, which is why traders keep an eye on the U.S. statistics, Shagov said. 

Brent oil prices were going down on Thursday in the evening after testing a U.S. $70 per barrel notch, but by Friday morning, they consolidated at $65.40. Investors are unsure on the future price dynamics, Alfa-Forex analyst Andrei Dirgin said.

The ruble has almost reached a notch of 50 against the U.S. dollar, but it is unlikely that on Friday, the central bank will try to prevent its further strengthening with any other means than verbal interventions, and the ruble-related expectations will not influence the stock market, he said.

Germany will release the March industrial output, the U.K. will post the trade surplus figures and the U.S. will release an NFP report and warehouses stocks figures, all of which will be important for Russian traders, Dirgin said.

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