Russian stocks to rise on improvements in background, geopolitics

MOSCOW, Dec 13 (PRIME) -- Russian stocks are likely to open higher on Thursday due to improvements in the general background and a slight easing in geopolitical tensions, analysts said.

“We expect the MOEX Russia Index to open with a noticeable increase of about 0.3–0.5% close to 2,380. The levels of 2,370 and 2,360 will act as the closest support, while 2,400 and 2,410 will become the resistance,” Vitaly Manzhos, senior risk manager at investment company Algo Capital, said.

“After a positive start of trade, the MOEX Russia Index may continue its upward movement to 2,390–2,400, as a positive external background supports it.”

The U.S. stock index futures rose 0.9% prior to the start of trade in Russia, the Brent oil price gained 0.6%, and futures for gold fell 0.1%. Japan’s Nikkei225 index increased by 1.0%, and Hong Kong’s Hang Seng went up by 1.3%. This combination of factors creates a positive background for the national market, Manzhos said.

“A slight increase of the RTS Index is possible today at the beginning of trade. The signs of establishment of trade dialogue between the U.S. and China prompt higher demand for risk at all markets. The British parliament expressed confidence in the prime minister, which gives hopes for further work on controlled Brexit,” investment company Olma’s senior analyst Anton Startsev said.

Investors will focus on the meeting of the European Central Bank, which may announce plans of a quantitative easing program, Startsev said.

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