Indian shares look set to open notably lower on Wednesday, mirroring weak global markets after Fed Governor Lael Brainard predicted the Fed would start reducing its balance sheet at a “rapid pace” as soon as May.
The Fed may provide additional clues about the outlook for monetary policy with the release of the minutes of its March meeting later today.
Benchmark indexes Sensex and the Nifty fell around 0.7 percent and half a percent, respectively on Tuesday, dragged down by financials. The rupee surged 25 paise to close at 75.28 against the dollar.
Asian markets fell broadly this morning, the dollar edged up to its highest level in nearly two years and U.S. Treasury yields hit multi-year highs, while oil extended losses from the previous session after industry data showed a surprise inventory build. The outlook for China’s growth also weighed on oil prices as Shanghai remained in lockdown.
U.S. stocks ended lower overnight as new sanctions loomed on Russia and Fed Governor Lael Brainard, who is awaiting Senate confirmation to serve as the Fed’s vice chairwoman, called the task of reducing inflation pressures “paramount” and indicated an aggressive approach to shrinking the Fed’s balance sheet.
The Dow dropped 0.8 percent, the S&P 500 shed 1.3 percent and the tech-heavy Nasdaq Composite index lost 2.3 percent.
European stocks ended mixed on Tuesday amid French election worries and macroeconomic uncertainties brought by the Russia-Ukraine war.
The pan European Stoxx 600 edged up 0.2 percent. The German DAX declined 0.7 percent and France’s CAC 40 index tumbled 1.3 percent while the U.K.’s FTSE 100 rose 0.7 percent.
Sensex, Nifty Seen Lower After Hawkish Comments From Brainard
2022-04-06 03:07:10
