Russian stocks seen flat ahead of meeting of US Fed

MOSCOW, Jun 17 (PRIME) -- The Russian stock market is to open with a marginal dynamics on Monday as market participants will be waiting for the U.S. Federal Reserve System’s (Fed) comments after a meeting scheduled for Tuesday and Wednesday, analysts said.

“A period of standstill on the stock market is possible in the short term, market participants are waiting for a comment by the U.S. Fed after a regular meeting (on Tuesday–Wednesday) where they hope to find the signs of plans to ease the monetary policy,” Anton Startsev, senior analyst at investment company Olma, said.

He said that strong U.S. retail data made some investors doubt that the Fed will cut the key rate soon.

Finam analyst Sergei Drozdov said that the local support level for the MOEX Russia Index stands at 2,738 and 2,710. The resistance notch is 2,780. The local support level for the RTS Index stands at 1,335 and 1,318, and resistance at 1,350.

Promsvyazbank analyst Mikhail Poddubsky said that Severstal on Monday, Novolipetsk Steel (NLMK), Magnitogorsk Iron and Steel Works (MMK), Norilsk Nickel and VTB later this week will have record dates, which will cap growth of the MOEX Russia Index.

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