Russian stocks to open neutrally before US FOMC meeting

MOSCOW, Oct 28 (PRIME) -- The Russian stock market will open with marginal changes of indices on Wednesday because investors will avoid active trading ahead of statements of the U.S. Federal Open Market Committee (FOMC), analysts said.

“A standstill is possible today at the start of the day prior to the announcement of the results of a FOMC meeting (a basic interest rate decision will be announced at 9:00 p.m. as a statement, there will be no press conference),” Olma senior analyst Anton Startsev said.

Brent kept flat at U.S. $46.81 per barrel at 9.04 a.m., Moscow time, and the prices are likely to change little until publication of the U.S. oil reserve data at 5:30 p.m., Moscow time, Oleg Shagov, head of the research department at investment company Solid, said.

U.S. stock market futures are little changed, which will also contribute to a neutral mood in Russia, he said.

The MICEX is likely to open at about 1,725. The closest support levels will be 1,700 and 1,690, while 1,735 and 1,745 will be the resistance zone, Vitaly Manzhos, senior analyst at Bank Obrazovanie, said.

Companies with ruble revenue can weaken because investors expect the Russian central bank to reduce the key rate on Friday, analysts said.

The energy sector is relieved by the news that no serious austerity measures were announced at the last meeting of the presidential commission for the industry on Tuesday, Manzhos said.

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