Russian stocks to rise on reports about lighter omicron disease

MOSCOW, Dec 7 (PRIME) -- The stock market will edge up at Tuesday’s opening  as the local benchmarks will price in medical reports that the new omicron variant causes lighter symptoms than its predecessors while investors are waiting for the talks of Russian President Vladimir Putin and U.S. President Joe Biden, analysts said.

“So far, a slight growth of blue chips is emerging during the morning trade supported by a better external background. The Western investors were cheered by doctors’ reports that the omicron variant of the coronavirus is more contagious, but causes a lighter disease,” Alor Broker’s senior analyst Alexei Antonov said.

The increase of the oil price close to U.S. $74 per barrel also helps the national market, he said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, also said that the Russian market will start the day with a moderate increase to price in the higher oil price and a 0.1–0.2% increase of the futures for the U.S. indices.

“At the beginning of the week, media published confirmation that the U.S. and Russian presidents will talk on Tuesday, and both sides made strong preliminary statements,” Manzhos said.

“It generally looked like attempts of two boxers to shake each other’s confidence before a serious fight.”

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