Russian stocks may rise as appetite for risk grows

MOSCOW, Jul 28 (PRIME) -- Russian stocks may rise slightly at the beginning of trade on Tuesday as there are signs that the appetite for risk of global investors is growing, analysts said.

“A possibility for the RTS Index to grow is not ruled out at the beginning of the day. Demand is still present on markets, and an emerging increase of the yield on U.S. Treasuries, with the yield on 10-year treasuries exceeding 0.6% annually, may reflect a cooling of interest in defensive assets,” investment company Olma’s senior analyst Anton Startsev said.

Futures for U.S. stock indices are rising, and the majority of Asian floors are in the green zone, he said.

At the same time, trade on global markets is still subject to the flow of corporate reports, and almost 30 companies of the S&P 500 index list are to report today before the start of trade in the U.S., Startsev added.

Yelena Kozhukhova, analyst at Veles Capital, said that the mood of players on foreign bourses was mixed at the beginning of the week as the market is waiting for days filled with macroeconomic data and corporate reports.

“Large-scale support measures continue supporting a high appetite for risks, while raising the attractiveness of gold at the same time,” Kozhukhova said.

Bogdan Zvarich, senior analyst at Promsvyazbank, said that the background for the Russian ruble was mixed at the beginning of the day. The market receives support from energy sources, where the Brent oil price is trying to grow, while dynamics of currencies of emerging states are falling against the U.S. dollar, this fact exerts pressure on the Russian currency, he said.

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