Russian stocks to fall on US Fed comments, lack of good news
MOSCOW, Jan 29 (PRIME) -- The Russian stock market will decrease at Thursday opening as traders lost interest in risky assets on the recent comments of the U.S. Federal Reserve System (Fed) officials that the U.S. economy is strengthening at a solid pace, and the stocks will shed the January gains as there is lack of good news, analysts said.
“Deepening of the downward correction is possible at the start of the trade today because of external background deterioration. Western stock exchange floors have started to witness volatility increase after the Fed noticed economic strengthening (which is perceived as an increasing opportunity for interest rate growth),” Olma’s senior analyst Anton Startsev said.
The ruble is likely to weaken at Thursday that will also negatively influence the Russian stock market, he said.
Traders used to wait for oil price recovery throughout January, but this did not happen, and in general, there is lack of positive news. That is why traders will be fixing their January’s gains, Promsvyazbank’s analysts Ilya Frolov and Yevgeny Loktyukhov said.
The E.U. foreign ministers may discuss introducing new economic sanctions against Russia at a meeting later on Thursday, according to some media reports. But they will hardly reach a consensus as Greece earlier said it will veto the new sanctions, so the meeting is not a major source for worries, the analysts said. However, investors will still follow the statements from the meeting, Startsev said.
The U.S. weekly jobless claims release will also influence the Russian stock market trends, Vitaly Manzhos, analyst at Nord-Capital, said.
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