Russian stocks may rise on rebounding oil, dovish Fed chair speech
MOSCOW, Mar 30 (PRIME) -- Russian stocks may open with an upward gap on Wednesday because oil prices have pared losses, and market participants want risky assets on the back of a speech by Janet Yellen, chairwoman of the U.S. Federal Reserve System (Fed), emphasizing caution in further rates increase, analysts said.
“Apart from the strengthening oil, the Russian broad market index will be bolstered by a global growth of demand for risky assets after statements of Janet Yellen in the Economic Club of New York on Tuesday,” Finam analyst Timur Nigmatullin said.
Brent is trying to regain positions after a dip to U.S. $39 per barrel, Oleg Shagov, head of investment company Solid’s research department, said.
The MICEX may open at about 1,850–1,855, restoring after the recent losses, Shagov said.
President Vladimir Putin will meet with government officials later on Wednesday in order to discuss priority bills for January–June 2016 aimed at improvement of the country’s business climate, while on the corporate level, the most noteworthy events will be the publication of container shipping company TransContainer’s financial results and a meeting of the board of directors of hydropower giant RusHydro, Shagov said.
Foreign events, including speeches of Fed representatives and statistics releases can also affect the behavior of Russian investors, he said.
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