Indian shares are likely to open on an upbeat note Tuesday on the back of a sharp fall in oil prices overnight and easing bond yields on expectations of near-term interest rate cuts in the U.S.
Benchmark indexes Sensex and Nifty fell around 0.9 percent each to reach a two-week low on Monday while the rupee settled almost flat at 83.14 against the dollar.
Asian markets followed Wall Street higher ahead of key U.S. inflation data and bank earnings this week.
China hinted at more easing with possible reserve ratio cut to create favorable financial conditions for the country’s economic growth,
The U.S. dollar and Treasury yields eased, helping gold prices push higher. Oil prices were seeing modest gains after falling around 4 percent on Monday amid demand worries after sharp price cuts by top exporter Saudi Arabia.
U.S. stocks ended on a buoyant note overnight after a New York Federal Reserve report said consumers expect lower inflation as well as weaker income and spending over the next several years.
Meanwhile, Atlanta Fed President Raphael Bostic reiterated his expectation of two rate cuts by the Fed this year.
The tech-heavy Nasdaq Composite surged 2.2 percent, its best day since November on the back of lower Treasury yields and Nvidia’s CES announcements. The S&P 500 rallied 1.4 percent and the Dow rose 0.6 percent.
European stocks reversed early losses to close higher on Monday as tumbling oil prices fueled hopes of lower inflation and interest rate cuts.
The pan European STOXX 600 gained 0.4 percent. The German DAX climbed 0.7 percent, France’s CAC 40 added 0.4 percent and the U.K.’s FTSE 100 finished marginally higher.
Market Analysis
Sensex, Nifty Set To Climb After US Tech Rally
2024-01-09 02:32:37
