Optimistic moods among investors in the US and Asia will likely give Russian traders the confidence to start off Wednesday in the black. Later in the day, investors will be looking at global news and macroeconomic updates.
Tuesday ended mostly in the red for Russian markets: The MICEX
was down by 0.8%, while the RST lost 0.91%.
Razgulay Group, OGK-5, TMK, Severstal and HLMK were the biggest
losers on March 26, while Norilsk Nickel, Uralkali, Lukoil and
preferred shares of Tatneft traded much better than the rest and
were in the black.
European stocks ended Tuesday with modest gains as investor
confidence increased after the Cyprus bailout was formalized. The
island state said it will keep its banks closed for another two
days to avoid panicked withdrawals. Britain’s FTSE100 was up 0.33%,
the German DAX added 0.11% and the French CAC40 grew by 0.55%.
US floors also traded in positive territory, as major averages were
pushed higher on Tuesday after the market fell in anticipation of
news from Cyprus. The Dow added 0.77%, the S&P 500 grew by
0.78% and NASDAQ climbed by 0.53%.
Investors were encouraged by several economic developments in the
United States showing that the housing market is recovering and the
economy remains stable. However, consumer confidence data was
disappointing – a sharp drop in this indicator proved American
fears about the consequences of stricter fiscal policy.
Cyprus is expected to complete capital control measures on
Wednesday to prevent bank runs by depositors anxious about their
savings after the country agreed a painful rescue package from
international lenders.
Europe will see indicators for economic confidence and the eurozone
business climate in March.
On Wednesday, NAR is scheduled to release a separate report on
pending home sales in the month of February. The US Energy
Department will also release its weekly update on crude oil
stocks.
Asian shares started off Wednesday in the black on positive data
from the States: The Hang Seng is up by 0.7%, the Nikkei added
0.04% and the Shanghai Composite is up by 0.51%.
Oil dropped slightly on Wednesday, with Brent losing 0.04% and
Light declining by 0.15%.