Russian stocks seen flat on oil price gains, US Fed statement fears
MOSCOW, May 18 (PRIME) -- The Russian stock market will likely open neutrally, with a possible small-to-moderate negative gap on Wednesday because a positive oil price dynamics will be balanced by anxious investors’ expectations of U.S. Federal Reserve System (Fed) meeting protocols, analysts said.
“Brent futures are again trading above U.S. $49 per barrel, which can be called a favorable factor for the Russian market. Nevertheless, the external background looks rather unfavorable in general as unexpectedly strong U.S. housing building and industrial output data have reminded investors about toughening of the U.S. Fed monetary policies,” Anton Startsev, senior analyst at investment company Olma, said.
The U.S. stock market closed in the red zone on Tuesday, and Asian investors are having a downbeat mood on Wednesday in the morning, which is why, Russia’s MICEX will likely see a moderate downward gap of 0.2–0.5% at the opening of the session, Bank Obrazovanie’s Senior Analyst Vitaly Manzhos said.
Promsvyazbank analyst Ilya Frolov forecasts a mostly neutral MICEX opening at 1,895–1,915. A negative trend is possible closer to the evening, as investors will be waiting impatiently for U.S. Fed minutes, he said.
The U.S. oil reserves data is another potent driver for the Russian market trends later Wednesday, Oleg Shagov, head of investment company Solid’s analytical department, said.
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