Russian stocks to open higher on stable oil, Chinese expectations
MOSCOW, Oct 15 (PRIME) -- Russian stocks are likely to open higher on Thursday supported by stable oil prices and expectations of China’s decisions to support its market, analysts said.
“Today an increase is possible at the beginning of trading. Abating concerns about possible toughening of the U.S. monetary policy and expectations of China’s stimulating measures formed a positive external background,” Olma’s senior analyst Anton Startsev said.
The Brent oil futures have gained 0.15% to U.S. $49.30 per barrel as of 7.15 a.m. Moscow time, while U.S. stock index futures are rising and Asian floors are showing mostly positive dynamics. The Chinese market showing the most significant growth, as investors hope that the announced reform of inefficient state companies will spur the economic growth, Oleg Shagov, head of investment company Solid’s analytical department, said.
“We expect the Russian stock market to open with a higher RTS index and the MICEX index close to 1,725,” Shagov said.
The payroll tax of about 400 billion rubles, which is to be paid today may provide some support to the Russian currency as foreign debt payments are contracting, he added.
“We expect the Russian market to open with a moderate increase of 0.2–0.4% in the range of 1,725–1,730 of the MICEX index. The levels of 1,710 and 1,700 will remain the closest support levels, while 1,730 and 1,740 will act as resistance,” Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.
During the day, investors will focus on the U.S. weekly jobless claims data and oil and oil product stocks, Manzhos added.
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