Russian stocks may open flat on stable oil, Fed expectations

MOSCOW, Dec 13 (PRIME) -- Russian stocks may open flat on Tuesday as the oil price has stabilized, while investors are wary ahead of Wednesday’s U.S. Federal Reserve System (Fed) comments on its monetary policy, analysts said.

“Today the rise may stop due to lower investor activity on the world markets on expectations of results of the Federal Open Market Committee meeting. The 0.25 percentage point increase of the key rate has been already priced in, but Fed’s comments may have an impact on the mood of trading and on expectations of a further monetary policy of the regulator,” investment company Olma said in a research note.

The background prior to the start of trade in Russia is mixed, with U.S. stock index futures marginally rising, Asian floors showing no common dynamics, and the Brent oil price easing by 0.34% to $55.50 per barrel as of 9.16 a.m. Moscow time after a Monday rally.

“We expect the market to open with insignificant changes of the MICEX index in a 2,225–2,230 range. The levels of 2,210 and 2,200 will remain as support, while 2,240 and 2,250 will act as resistance,” Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

But Timur Nigmatullin, an analyst at investment company Finam, said that concerns regarding the Fed’s key rate increase and the slight contraction of the oil prices may result in a 0.5% fall of the MICEX and the ruble at Tuesday opening.

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