Russian stocks seen flat on US Fed concerns, upward correction

MOSCOW, Jun 8 (PRIME) -- The Russian stock market will demonstrate marginal dynamics at the opening of Monday’s trading session as investor worries over a possible rate hike by the U.S. Federal Reserve System (Fed) will be balanced by the wish to drive prices higher after recent lows, analysts said.

“The external background has given us no reason for a rally, concern over the expected Fed’s monetary policy toughening remains, and there is uncertainty about the chances for Greece’s debt problems solution,” Olma’s senior analyst Anton Startsev said.

The U.S. employment data which overshot forecasts, raised concerns amid traders that the Fed will raise rates faster than expected, analysts said.

The Brent price fell 0.60% to U.S. $62.93 per barrel as of 9.02 a.m., Moscow time.

“We think that an upward correction in the key indices can continue but risks of a mood change during the day are still there,” Promsvyazbank analysts Ilya Frolov and Yevgeny Lokhtyukhov said.

U.S. stock market futures and key Asian stock indices did not demonstrate strong dynamics in the morning, which sets a neutral background for the opening of trade in Russia, Oleg Shagov, head of analytical department at investment company Solid, said.

The level of 1,680 is still potentially the resistance level for the MICEX growth, and 1,630-1,615 is the support level, Shagov said.

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