Russian stocks to edge up as Yellen wants to help US economy

MOSCOW, Apr 1 (PRIME) -- The Russian stock market will rise slightly at Tuesday’s opening as a recent speech by U.S. Federal Reserve System (Fed) Chairwoman Janet Yellen who said that the U.S. economy needs support will provide investors with a growth driver, analysts said.

“The growth trend is likely to continue at the start of the trading session – positive expectations formed by the Fed Chairwoman are still growth drivers,” Olma analyst Dmitry Kulakov said.

Yellen said that the labor market recovery faces severe challenges forcing monetary authorities to continue supportive policies. As the result, the S&P and Dow Jones futures grew, analysts said.

Investors are gradually regaining confidence in the Russian market and money has started to flow into Russia-dedicated funds. Blue chips benefit most from this, Kulakov said.

But ITinvest analyst Vasily Oleinik warned that the RTS index has already exhausted its growth potential.

“The RTS hard currency index has bounced 20% back from its year low, so, believe me, that those who entered the market at the lows already have to take profits,” he said.

“The RTS has entered a zone of a strong four-year resistance with a 1,200-1,250 range.”

The business and industrial activity indices in Europe and the U.S., the unemployment level in the euro zone and the U.S. construction spending figures will be in the focus of investors’ attention, Promsvyazbank senior analyst Oleg Shagov said.

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