Russian stocks to fall as traders remember US Fed rate rise costs

MOSCOW, Dec 18 (PRIME) -- Russian stocks may decline at Friday opening because the Thursday’s optimism over the interest rate increase by the U.S. Federal Reserve System (Fed) was excessive, and oil prices are beginning to slide, analysts said.

“A certain downward correction is possible today in the start of the trade. As the U.S. market’ trade patterns show, the first reaction to the statement after the Fed meeting was overly optimistic,” Olma’s senior analyst Anton Startsev said.

The U.S. market sagging on Thursday is one of the key negative factors for the Russian market on Friday in the morning, Vitaly Manzhos, a senior analyst at Bank Obrazovanie, said.

The RTS will retreat and the MICEX will open at about 1,770–1,775, according to Oleg Shagov, head of investment company Solid’s analytical department. Both indices will correct downwards after reaching local highs on Thursday in the evening, he said. The RTS and the MICEX closed at 792.07 and 1,780.97, respectively.

“Yesterday we were witnessing a rather emotional growth, similar to a rather groundless and brief rally in the end of November. Russian trade session participants will soon remember about the cheap oil,” Manzhos said.

Brent prices were falling on Thursday in the evening. They grew 0.32% to U.S. $37.18 at 9.11 a.m. Moscow time on Friday.

The oil price and the ruble rate dynamics will define the Russian market trends later on Friday, Shagov said.

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