Russian stocks seen growing at opening as foreign lockdowns ease

MOSCOW, May 6 (PRIME) -- The Russian stock market will likely edge up at opening on Wednesday as the foreign markets are encouraged by the news about lockdown easing, analysts said.

"The American futures have been trading in the negative zone today during the Asian session but have entered the green zone by the opening of our trading session. Oil remains at U.S. $31. This background will mean that we’ll open with a small rise and the later dynamics will depend on the Western indicators," Alor Broker’s analyst Alexei Antonov said.

The U.S. trading floors closed higher on Tuesday on the back of investor optimism concerning gradual easing of the U.S. lockdown, Sergei Drozdov, analyst at investment company Finam, said. California's Governor Gavin Newsom said that book, flower and sports stores could open doors on Friday.

The European restrictions have eased as well with Italy relaunching export-oriented companies and Germany restarting sports events and stores, the analyst said.

But, according to Drozdov, Tuesday's growth of the U.S. stocks was weakened by a statement of Chairman of the Federal Reserve System (Fed) Richard Clarida that state support of the economy against the coronavirus crisis were insufficient.    

Drozdov said that better times are coming for the oil market as well with Brent rising by 14.15% to $31.98 as the new OPEC plus deal enters in force and global economies are recovering.

The analyst put the MOEX Russia support level at 2,600 and 2,655, and the resistance ones at 2,700 and 2,715. The RTS support is 1,097 and 1,060, and resistance 1,147 and 1,164.

End %%mk/jst%%