Sensex, Nifty May Struggle For Direction At Open

Indian shares may struggle for direction at open on Friday as hot U.S. labor market data lifted the dollar and yields.

Stock-specific action may be seen in the wake of mixed global cues and ahead of earnings results from top IT companies due next week.

Benchmark indexes Sensex and Nifty fell modestly on Thursday to extend losses for a second consecutive session, while the rupee gained 32 paise to close at 82.50 against the dollar supported by a weaker greenback overseas.

Asian markets traded mostly higher this morning as the monthly U.S jobs report loomed.

The dollar traded firm versus major peers while U.S. two-year Treasury yields eased a little bit after hitting a more than two-month high of 4.497 percent overnight.

Oil extended gains from Thursday as data showed lower fuel inventories. Gold edged up slightly and was on course for a weekly gain.

U.S. stocks fell sharply overnight, as strong ADP private payrolls data and weekly jobless claims figures provided further evidence of a tight labor market and dashed hopes for a change to aggressive Fed policy anytime soon.

Adding to concerns about the economic outlook, Fed members Esther George and James Bullard said that interest rates will stay higher for longer to tame inflation.

The Dow lost 1 percent, the tech-heavy Nasdaq Composite tumbled 1.5 percent and the S&P 500 declined 1.2 percent.

European stocks snapped a three-day winning streak on Thursday after the release of hawkish Fed minutes and disappointing German trade data, with both imports and exports falling in November.

The pan European STOXX 600 slipped 0.2 percent. The German DAX dropped 0.4 percent and France’s CAC 40 index eased 0.2 percent, while the U.K.’s FTSE 100 rose 0.6 percent after upbeat trading statements from Next Plc and B&M European Value Retail.