Indian markets may show a downward trend at the opening bell on Friday, following a five-day decline in U.S. stocks, signaling a cautious start to the year. The strengthening U.S. dollar and rising U.S. Treasury yields, bolstered by signs of a robust U.S. labor market, may continue to exert pressure on the markets and support the Federal Reserve's gradual strategy in reducing interest rates.
On Thursday, the Sensex and Nifty saw respective increases of 1.8% and 1.9%, spurred by rising auto and financial stocks in anticipation of the upcoming quarterly earnings announcements.
The Indian rupee depreciated by 9 paise to close at 85.73 per dollar, influenced by strong dollar demand from importers. Across Asia, stock markets were primarily on the rise this morning, despite the Japanese markets being closed for a holiday. This upward trend in the region can be attributed to optimism regarding potential interest rate reductions in China and positive developments in the South Korean tech industry.
According to the Financial Times, the People's Bank of China plans to cut interest rates "at an appropriate time" this year. In Seoul, technology stocks surged after SK Hynix announced plans to showcase its advanced AI memory technologies at CES 2025 in Las Vegas from January 7 to 10.
Meanwhile, the dollar is set for its best week since November, while gold remained stable following a 1% gain the previous day. Oil prices continued to rise after increasing by more than $1 a barrel on Thursday, buoyed by hopes for China's economic growth and fuel demand following President Xi Jinping's commitment to fostering economic expansion.
In the United States, stock movements were mixed before closing lower overnight, with the dollar reaching a two-year peak after weekly jobless claims unexpectedly fell to an eight-month low, renewing concerns over high interest rates. Market sentiment weakened further with news of a decline in Tesla's annual sales and reports that Apple is offering significant discounts on its latest phones in China.
Both the tech-heavy Nasdaq Composite and the S&P 500 experienced a drop of about 0.2%, marking their fifth consecutive day of decline, the longest streak since April, while the Dow Jones Industrial Average fell 0.4%.
In contrast, European stocks ended higher on Thursday, recovering from initial losses despite data indicating a deepening downturn in the euro zone and U.K. manufacturing sectors at the close of 2024. The pan-European STOXX 600 rose by 0.6%, with Germany's DAX up 0.6%, France's CAC 40 rising 0.2%, and the U.K.'s FTSE 100 increasing by 1.1%. Energy stocks soared following a sharp rise in natural gas prices, as the region prepared for harsh winter conditions without Russian supplies delivered through Ukraine.
The material has been provided by InstaForex Company - www.instaforex.com
RobotFX
Posts
Posts
No comments:
Post a Comment