Russian stocks may rise on easing of global economic risks

MOSCOW, Mar 26 (PRIME) -- Russian stocks may firm at opening on Tuesday as international macroeconomic risks have eased, analysts said.

“We expect the MOEX Russia Index to open with a slight increase of about 0.1–0.3% around 2,500–2,505. The levels of 2,490 and 2,480 will act as the closest support, while the levels of 2,510 and 2,520 will become the resistance,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

The background for the Russian market is positive in the morning as the U.S. stock index futures rose by up to 0.4%, the Brent oil price gained 0.3%, Japan’s Nikkei225 index grew by 2.3%, and Hong Kong’s Hang Seng added 0.1%, Manzhos said.

“Today, the increase of the RTS Index may continue at the beginning of trade. Yesterday Germany published its business climate statistics and it was better than forecasted, which softened concerns about macroeconomic risks. As a result, volatility at Western bourses abated, but it is still worse than two-month average figures,” Olma’s senior analyst Anton Startsev said.

During the week, investors will focus on the news about the U.S.–China trade negotiations and on the series of votes in the British parliament that are to define the Brexit format, Startsev added.

Mikhail Poddubsky, chief analyst at Promsvyazbank, said that the global investor mood improved slightly on Monday. Releases of macroeconomic data were scarce at the beginning of the week, and the market focused on other topics. The market welcomed recent comments of sources close to the Chinese diplomats that the country was preparing to hold a China-U.S. summit in the third or fourth week of May.

“Taking into account the fact that the international bourses are trying to rebound, we think that the MOEX Russia Index has chances to climb up to the range of 2,500–2,520 today,” Poddubsky said.

Manzhos also said that during the day investors will also track U.S. statistics releases, of which the most notable is the March consumer confidence index.

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