Stocks can open flat as investors await US Fed’s policy decision

MOSCOW, Jul 28 (PRIME) -- The Russian stock market will again open neutrally and consolidate during the day on Wednesday in light of a mixed global environment ahead of the U.S. Federal Reserve’s monetary policy decision, analysts said.

“We expect the Russian stock market to open with marginal changes. Investors will carefully watch the monetary policy decision of the (U.S. Federal Reserve’s) Federal Open Market Committee and public statements of Federal Reserve Chair Jerome Powell,” Andrei Vernikov, head of investment analysis department of Investment Group Univer, said.

Vitaly Manzhos, senior risk manager at investment company Algo Capital, expects the MOEX Russia Index to move moderately by around 0.1–0.3% at the opening and to continue previous days’ consolidation later.

The U.S. indices futures fell by 0.2–0.3%, Asian bourses are trading 0.9–1.6% lower, and the Brent oil price added 0.4% so the external background can be seen as mixed, he also said.

Investors in Russia are also likely to follow a slew of financial results releases for April–June by IT giant Yandex, independent gas producer Novatek, power companies Enel Russia and Unipro, and hydropower producer RusHydro.

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