Russian stocks seen neutral on US key rate cut hopes, oil price fall - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Russian stocks seen neutral on US key rate cut hopes, oil price fall

MOSCOW, Jun 5 (PRIME) -- The Russian stock market will likely open with marginal changes on Wednesday as appetite for risk was restored by the U.S. Federal Reserve System (Fed)’s comment that it is ready to cut the key rate, but oil prices decreased, analysts said.

“The RTS Index may increase today at the start of trade following the global stock markets -- investors cheered up by a speech by Chairman of the U.S. Fed Jerome Powell,” Olma’s senior analyst Anton Startsev said.

“He signaled that the ruler is ready to cut interest rates in response to the economic slowdown due to the trade wars (the possibility of a key rate reduction by the Fed on June 19, the next meeting, is estimated by the futures market at almost 17%, as reported by Bloomberg, at the July meeting at almost 62%),” Startsev said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, said that the U.S. stock market futures grew by up to 0.2%. Brent lost 0.7%, the gold futures added 0.2%. China’s Shanghai Composite increased 0.7%, Japan’s Nikkei rose 1.8%.

He said that the MOEX Russia Index will likely edge up by 0.3% at 2,700–2,715. The levels of 2,690 and 2,680 will be the closest support and 2,720–2,730 the resistance.

End

05.06.2019 09:35