Russian stocks seen falling slightly ahead of US Fed meeting

MOSCOW, Jun 14 (PRIME) -- The Russian stock market will likely edge down at Tuesday's opening, because investors expect that the U.S. Federal Reserve System (Fed) will raise the key rate aggressively on Wednesday.

"The situation on the stock markets is worrying. Investors flee risky assets, as inflation has accelerated in the U.S. and the euro zone fearing further deceleration of business activity and more decisive steps of the central banks in the monetary policy normalization," Univer Capital’s Andrei Vernikov said.

According to the analyst, the U.S. stock market futures rose after a sale-off, but they are to cut the gains by the time the Russian session starts.

Vernikov also said that the expected negotiations between Turkish President Recep Tayyip Erdogan and his Russian and Ukrainian counterparts will unlikely affect the Russian stock market, because they concern only the grain issues.

Senior analyst at financial supermarket Banki.Ru Bogdan Zvarich said that the rest of the global markets started the week with a significant decline after the U.S. said its May inflation amounted to 8.6%, while the market expected it at 8.3%. The Fed might raise the key rate by 75 basis points at one of the next meetings. The June meeting slated for Wednesday may result in an aggressive rate growth.

Zvarich also said that after the Wednesday meeting, the global markets are to sink to new local lows.

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