Russian stocks to open flat as investors focus on U.S. Treasuries

MOSCOW, May 15 (PRIME) -- The Russian stock market can open neutrally on Tuesday, because investors have lost their interest to emerging market assets as U.S. Treasuries’ yields increased, analysts said.

“The state of the external background before the start of trade in Russia can be characterized as unclear, or close to neutral,” Vitaly Manzhos, a senior risk manager at investment company Nord Capital, said.

Olma senior analyst Anton Startsev said that the external background gives the market no clue where to move as oil prices remain high but the yield on 10-year U.S. Treasuries has exceeded 3.0%, hurting the attractiveness of emerging markets’ assets.

Manzhos said that the MOEX Russia Index is to open little changed, at 2,355–2,360. The nearest support levels are 2,350 and 2,340 and resistance is at 2,370 and 2,380.

Startsev said that the RTS can return to a below 1,200 during trade.

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