Russian stocks to increase at opening as oil prices rebound

MOSCOW, Jan 21 (PRIME) -- The Russian stock market will open higher on Wednesday because oil prices have rebounded since Tuesday although the restart of an active phase of the Ukrainian military conflict will cap the rise, analysts said.

“The external background before the beginning of trade in Russia may be called positive,” Vitaly Manzhos, analyst at Nord-Capital, said.

Brent has rebounded from Tuesday’s lows by 0.98% to U.S. $48.46 per barrel at 9.26 a.m., Moscow time, and the U.S. stock indices closed in the green zone with the S&P rising 0.15% and the Dow Junes virtually flat.

“We think that in case there are no strong movements on the oil market, the current fragile stability of the Russian market may be in place until tomorrow’s meeting of the European Central Bank,” Promsvyazbank said.

The restart of an active military operation in Ukraine and recent comments by the E.U. foreign ministers make Russian investors fear that the E.U. will keep sanctions against Moscow for longer or that it will extend them, the analysts said.

The anxiety over the Standard & Poor’s verdict on Russia’s rating which must be issued until the end of January, is adding to negative sentiment, Promsvyazbank said.

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