Russia’s MICEX can rise on oil gains, RTS flat on Brexit

MOSCOW, Oct 3 (PRIME) -- Russia’s ruble-denominated MICEX stock market index will increase on Monday morning helped by an oil price rebound, while the dollar-denominated RTS will likely continue its consolidation on the back of heightened Brexit worries analysts said.

“The resulting influence of the key factors which significantly affect behavior of the Russian financial market is moderately positive today at the start of the day, according to our estimates,” Oleg Shagov, head of investment company Solid’s analytical department, said.

Brent has rebounded to U.S.$50 level after traders had switched to December contract sales. A U.S. drilling activity rise and higher exports expectations by Iran pose a threat to growth continuation but are insufficient to offset a positive trend on the commodities market so far, Shagov said.

The U.S. stock market futures are gaining, as well as the Asian markets. The European premarket trading signals an upcoming growth as well, which will help Russian assets to rise, Shagov said.

According to Olma senior analyst Anton Startsev, the RTS will likely continue to consolidate because recent statements by U.K. Prime Minister Theresa May about initiation of the Brexit procedure till April 2017 will make investors revise political risk predictions.

The euro zone purchasing managers’ indices and the U.S. ISM Manufacturing index will be the major statistics releases of Monday, Startsev said.

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