Russian stocks to rise on higher US indices, calmer Ukraine mood

MOSCOW, Mar 5 (PRIME) -- The Russian stock market is likely to open flat or to extend previous gains at Wednesday’s opening as U.S. indices increased and the situation in Ukraine eased after a speech of President Vladimir Putin, analysts said.

“Today we expect to see a continued growth on the Moscow Exchange at the beginning of trade. Exterior background is positive at opening: the U.S. floors closed firmly higher … The Ukrainian news background has calmed, but it will exert pressure on traders’ decisions,” Olma analyst Ruslan Yunusov said in a note.

The U.S.’ Dow Jones index closed 1.41% higher, and the S&P 500 index went up 1.53%.

Putin said at a news conference that there is no need at present to use force against Ukraine, which is currently undergoing a social and political crisis.

The MICEX index rose 5.26% to 1,356.54 at the previous closure, while the RTS increased 6.20% to 1,184.22.

Promsvyazbank analysts said that the domestic indices may open flat, but the MICEX index will try later to rise to 1,375 points, if volatility on the stock market remains high.

During the day, Markit Economics will release Russia’s Purchasing Managers Index (PMI) Services for February, as well as Services PMI for February of France, Germany, Italy, Spain and the E.U.

The E.U. will release its gross domestic product data for October–December 2014 and retail sales for January. The U.S. will release its services PMI and non-manufacturing PMI for February. The U.S.’ Energy Information Administration will report crude oil stocks as of February 28.

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