Russian stocks seen under pressure after US Yellen’s latest speech

MOSCOW, Aug 29 (PRIME) -- The Russian stock market will likely decline at Monday opening as investors do not want risky assets after the latest speech by U.S. Federal Reserve System (Fed) Chairwoman Janet Yellen, in which she said that the interest rate increase might be accelerated, analysts said.

“After the speeches by U.S. Fed officials, the developing markets are under a moderate pressure, this concerns both stock and futures’ markets,” TeleTrade analyst Mikhail Poddubsky said.

Yellen said that the economic data for the past two months added reasons to raise the key rate. Vice Chair of the Fed Stanley Fischer added to this sentiment by saying that the Fed can raise the rate already at its September meeting if the labor market data for this week is strong.

A decrease of oil futures will also cause a downward trend on the Russian stock market, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

Brent fell 1.20% to U.S. $49.32 per barrel as of 9:33 a.m. Moscow time.

The MICEX will likely decline by 0.5% to 1,980–1,985. The levels of 1,970 and 1,960 will be the closest support zones and 1,995, 2,000 will be the resistance zones, Manzhos said.

Oil futures will be the main factor influencing the Russian market trends on Monday, he said.

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