Russian stocks to open mixed on low oil prices
MOSCOW, Aug 6 (PRIME) -- Russian stocks are likely to open mixed on Thursday with the MICEX index changing insignificantly and the RTS index contracting, analysts said.
“We expect the Russian stock market to open close to 1,690 of the MICEX index and with a decrease on the RTS index and expect that the further dynamics of these indicators will be influenced by external factors with the oil price dynamics being the key,” Oleg Shagov, senior analyst at investment company Solid, said.
Vitaly Manzhos, senior analyst at Bank Obrazovanie, also said the MICEX index may see a close to neutral opening in a 1,690-1,695 range and added that the closest support levels for the index will be 1,680 and 1,670, while 1,700 and 1,710 will be resistance levels.
The Brent oil price has risen 0.28% to U.S. $49.73 per barrel by 8.44 a.m. Moscow time, still below the psychologically important level of $50 per barrel. The U.S. stock index futures did not change significantly and Asian floors showed no single dynamics. These factors provide a mixed background prior to the start of the trading session.
But even if the market falls at the start of trading, it will not be deep, as “there are no reasons for strong movements on the market,” Olma’s senior analyst Anton Startsev said. Moreover, the ISM Non-manufacturing index turned out to be far better than forecasted, raising fears that the U.S. Federal Reserve System will increase its rates, he added.
During the day, investors will also focus on the Bank of England data on its rates, minutes of a meeting of the monetary policy committee and a quarterly inflation report, while the U.S. is to release jobless claims statistics.
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