Russian stocks seen growing on US industrial inflation deceleration

MOSCOW, Aug 12 (PRIME) -- The Russian stock market will likely open higher as the U.S. stock market futures grew after the U.S. said its inflation slowed down, analysts said.

"Speaking about the global market mood on Friday morning, it can be characterized as moderately positive. The leading Asian floors consolidate near Thursday's closing. The Japanese market that rose by 2.5%), where yesterday was a holiday, is an exclusion," Bogdan Zvarich, senior analyst at financial platform Banki.ru, said.

"The futures for the main U.S. indices add up to 0.2%. The nearest Brent futures correct by 0.5% after a rise on Thursday to about U.S. $99.1 per barrel," Zvarich said.

Investors reacted positively to the deceleration of industrial inflation in the U.S. to 9.8% in July from 11.3% in June, Zvarich said. The trend could indicate a possible consumer price inflation fall in the next several months, which would result in the U.S. Federal Reserve System (Fed) raising the key rate by 50 basis points in September, rather than 75 basis points expected before.

According to Zvarich, improvement of the fuel market situation and growing appetite for risky assets could allow the MOEX Russia Index to claw back some Thursday’s losses.

But head of PSB Bank’s analysis group Vladimir Solovyov said that the situation is unfavorable for the MOEX Russia index in spite of the high oil prices, because automatic conversion of depositary receipts into shares starting next week causes concerns among investors. Sales can start on Friday, as the U.S. reporting season as near its end, and the possibility of the U.S. economy recession is worrying.

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