Russian stocks seen flat as oil rebounds, traders fear US Fed steps

MOSCOW, May 27 (PRIME) -- The Russian stock market will see a marginal dynamics at the trading session opening on Wednesday because an oil price rebound registered in the morning will be offset by investors’ fears of a sooner than expected interest rate increase by the U.S. Federal Reserve System (Fed), analysts said.

“The overall background and the influence of the key factors on the Russian stock market are close to neutral today in the morning, under my estimates,” Oleg Shagov, senior analyst at investment company Solid, said.

Brent rose 0.64% to U.S. $64.13 per barrel as of 9.23 a.m., Moscow time on Wednesday, recovering after recent losses, which will support Russian assets, Shagov said.

Solid figures in U.S. durable goods orders and new housing sales reports gave investors reasons to revise the estimates of the Fed interest rate growth timing, and the U.S. statistics triggered a downward correction at markets worldwide, Olma’s senior analyst Anton Startsev said.

A negative dynamics at foreign floors may put pressure on Russian indices, Promsvyazbank’s analysts Ilya Frolov and Yevgeny Loktyukhov said.

The level which will stem the MICEX wave of growth is at 1,670-1,680, while the support level is 1,630, Shagov said.

End