Indian Shares Seen Tad Lower At Open

(RTTNews) - Indian shares are seen opening a tad lower on Thursday as investors asses persistent U.S. inflationary pressures and react to Nvidia's upbeat quarterly results and guidance.

The potential downside may remain capped somewhat as Brent crude futures slipped toward $87 a barrel, extending losses for a fourth consecutive session amid signs of diplomatic progress in the Middle East.

Qatar's Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani will visit the Iranian capital today in an effort to relaunch peace talks between the U.S. and Iran.

Benchmark indexes Sensex and Nifty fell around 0.2 percent and half a percent, respectively on Wednesday, with information technology stocks leading losses after the U.S. government paused visa appointments amid an immigration crackdown. The forex market was closed on Wednesday on account of Id-e-Milad. Foreign institutional investors net bought shares worth Rs 502.63 crore on Wednesday, while domestic institutional investors net bought shares to the extent of Rs 6,425.16 crore, according to provisional exchange data.

Asian markets were mixed this morning while the U.S. dollar held near an eight-day high as firmer-than-expected U.S. inflation data kept expectations for a Fed rate hike by year-end live.

The yield on the U.S. 10-year Treasury bond slipped to 4.647 percent ahead of Kevin Warsh's first Jackson Hole speech as Fed Chair on Friday that could provide further clues on the path for U.S interest rates. Gold jumped 0.8 percent to $4,629 an ounce after a pullback on Wednesday.

U.S. stocks ended slightly lower overnight while bond yields moved higher after a report showed inflation rose 3.7 percent in the 12 months through July, coming in slightly above expectations while core inflation stood at 3.3 percent.

Separate data showed the U.S. economy grew 1.5 percent in the second quarter, unchanged from the previous advance reading.

The Dow dipped 0.2 percent, the tech-heavy Nasdaq Composite slipped 0.1 percent and the S&P 500 finished marginally lower.

European stocks ended mixed on Wednesday after hawkish ECB rate warnings and reports suggesting that the U.S. and Iran have reached an interim ceasefire agreement that includes guarantees for unhindered commercial navigation through the Strait of Hormuz.

Sentiment was further helped by official statements from Iran and Oman confirming they had agreed on a temporary maritime route for ships travelling through the Strait of Hormuz.

The pan-European STOXX 600 ended little changed. While the U.K.'s FTSE 100 slipped 0.1 percent, the German DAX edged up marginally and France's CAC 40 rose 0.3 percent.