Russian stocks seen flat before US Fed key rate decision

MOSCOW, Jun 14 (PRIME) -- The Russian stock market is expected to open with marginal dynamics on Wednesday, as investors will be waiting for important events later this week, with the U.S. Federal Reserve System (Fed) expected to decide on the key rate on Wednesday afternoon, analysts said.

“The ultimate influence of the key factors significantly affecting the behavior of the Russian financial market has been close to neutral today at the start of the day, in our estimates,” Oleg Shagov, head of investment company Solid’s research department, said.

The MICEX can open at 1,860 and can test the support zone of 1,850 if the external background deteriorates, he said.

Olma senior analyst Anton Startsev said that the market activity can be subdued on Wednesday because investors will be waiting for the key rate decision and a comment by the U.S. Fed, scheduled for 9:00 p.m. and 9:30 p.m., Moscow time, respectively.

An unclear dynamics of oil prices can be another reason for weak Russian market trends, he said.

The central banks of Russia, Japan and the U.K. are scheduled to meet later this week to make policy decisions, which, according to Shagov, will be the key week’s events.

The U.S. Congress will consider a ruling on sanctions against Russia, and Russian President Vladimir Putin will hold a question and answer session on the television. All these events can add turbulence to the Russian market, as well as the approaching expiration of futures, Shagov said.

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