While US stocks spent most of the trading session in positive territory, helped by the stimulus hopes, some concerns about the details of the package led to a modest decline towards the end of Wall Street trade
Indian stock markets are likely to be volatile on Friday. Trends in SGX Nifty suggest a soft opening of Indian benchmark indices. On Thursday, the BSE Sensex ended at 49,584.16, up 91.84 points or 0.19%. The Nifty closed at 14,595.60, up 30.75 points or 0.21%.
Asian shares rose on Friday, brushing off a late Wall Street dip as expectations of large US stimulus under President-elect Joe Biden shored up sentiment while oil prices perked up on upbeat Chinese trade figures.
President-elect Biden will unveil a $1.9 trillion stimulus package proposal designed to jump-start the economy and speed up the US response to the coronavirus pandemic, officials said on Thursday.
While US stocks spent most of the trading session in positive territory, helped by the stimulus hopes, some concerns about the details of the package led to a modest decline towards the end of Wall Street trade.
In Asia, investors held a broadly more optimistic with Australia’s S&P/ASX 200 up 0.2%, Japan’s Nikkei 225 0.3% higher and South Korea’s Kospi inching up 0.2%.
Investors also kept an eye on Federal Reserve Chair Jerome Powell, who struck a dovish tone in comments at a virtual symposium with Princeton University.
Powell said the US central bank is not raising interest rates anytime soon and rejected suggestions the Fed might start reducing its bond purchases in the near term.
On Wall Street, the Dow Jones Industrial Average fell 0.22%, the S&P 500 lost 0.38%, and the Nasdaq Composite dropped 0.12%.
In India, Some of the top companies which will announce their December quarter earnings today are HCL Tech, PVR, Shoppers Stop and L&T Finance Holdings.
Passenger vehicle and two-wheeler sales in India rose for the fifth straight month in December as automakers moved to replenish dealer inventory after better-than-expected retail sales during the festive months of October and November.
Bharti Airtel will be in focus as global index provider MSCI said it will increase weightage of the telcat upcoming index review in February. The move follows increase in foreign investment limit in the telecom major from 49% to 100%.
Wholesale price index (WPI)-based inflation eased to a four-month low of 1.22% in December as food prices softened, but core inflation was at a 24-month.
Meanwhile, oil prices rose on Thursday, boosted by a weak dollar and bullish signals from Chinese import data despite renewed concerns about global oil demand due to surging coronavirus cases in Europe and new lockdowns in China.
Brent crude oil futures rose 36 cents, or 0.6%, to settle at $56.42 a barrel. US crude ended 66 cents, or 1.3%, higher at $53.57.
Treasury yields edged higher in anticipation of the new stimulus package. Benchmark 10-year Treasury notes last fell 12/32 in price to yield 1.1292%, from 1.088% late on Wednesday.