Russian stocks seen flat as traders wait for US FOMC report

MOSCOW, Jul 26 (PRIME) -- Russian shares will open with marginal changes on Tuesday because the factors affecting the market are mixed and the activity of investors is subdued ahead of statements from a meeting of the U.S. Federal Open Market Committee (FOMC), analysts said.

“Some rebound in the RTS is not ruled out today at the start of trade, a deeper the correction does not seem justifiable. But there is no reason for stable market trends, traders on the global stock and commodities markets have curtailed their activity on expectations of the FOMC meeting outcome, which will be announced tomorrow in the evening,” Anton Startsev, a senior analyst at investment company Olma, said.

Brent futures are recovering after losses on the back of a forecast of a further oil reserves decrease in the U.S., Oleg Shagov, head of investment company Solid research department, said.

Futures for the U.S. key stock market indices are little changed; Asian markets are demonstrating mixed dynamics. The premarket of the European session signals a slight increase during the session start. All these factors make for a mostly neutral background during the opening of the Russian trading session, Shagov said.

Investors are likely to react to rating agency Fitch’s retaining Russia’s long-term default rating at BBB- in the national currency positively, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The MICEX is expected to open at 1,930–1,935 and could try to break a 1,950 resistance notch later in the day, Shagov said.

End