Stocks seen easing following other markets after US Fed rate cut

MOSCOW, Aug 1 (PRIME) -- The Russian stock market will likely open lower on Thursday, following foreign markets, which fell after the U.S. Federal Reserve System (Fed) reduced its key rate because of a global economic slowdown, analysts said.

“A moderately negative background is formed today before opening of the Russian market. The Russian indices are at the risk of a decline at the beginning of the day, following the patterns of foreign floors,” Solid analysts said.

Olma senior analyst Anton Startsev said that a comment by Fed Chairman Jerome Powell that the cycle of key rate reduction might be short-term made investors revise their forecast for a later decrease of the rate this year. As a result, the U.S. stocks decreased and the dollar strengthened hurting the attractiveness of developing markets.

Finam analyst Sergei Drozdov said that the support level for the MOEX Russia Index stands at 2,710 and 2,690. The resistance notch is 2,750. The local support level for the RTS Index stands at 1,335 and 1,324, and resistance at 1,354 and 1,366.

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