Russian stocks to open flat amid bearish moods on foreign floors

MOSCOW, Jan 24 (PRIME) -- The Russian stock market may open flat on Friday depressed by a bearish mood on foreign markets hit by worse-than-expected macroeconomic statistics, analysts said.

“We expect the Russian trading session to start in a neutral key, however, we suppose that in case of any further worsening of foreign environment the MICEX index is risking a fall to 1,480–1,485. The chance of resumed growth and breaking through the resistance level of 1,510 is still low,” Promsvyazbank senior analyst Oleg Shagov said.

The MICEX index fell 0.12% to 1,496.90 on Thursday.

The U.S.’ Leading Indicators released by the Conference Board amounted to 0.1% in December, below the expected 0.2%. Existing home sales in December were registered at 4.87 million units instead of the forecasted 4.94 million units.

“The U.S. market reacted with a decrease to the macroeconomic statistics that discouraged investors on Thursday … The U.S. financial sector was among the outsiders yesterday as well,” Shagov said.

“The negative stock dynamics on the European market show that traders’ expectations are worsening, meaning that a correction mood will dominate the Russian market on Friday,” Veles Capital analysts said.

During the day, Italy will release its retail sales for December, and the U.K. will disclose mortgage approvals for December. Governor of the Bank of England, Mark Carney, will deliver a speech.

A meeting of the U.S. Federal Open Market Committee on January 28–29 will become the main event of the next week. “The Federal Reserve may decide to continue to curb the stimulating measures since the latest macroeconomic data do not provide counter-indications,” Shagov said.

End