Indian Shares Set To Open Higher On Fed Cut Hopes

(RTTNews) - Indian shares may open on a positive note Wednesday, mirroring firm cues from global markets as the combination of weak private payrolls and subdued retail sales figures from the U.S. boosted expectations for a Federal Reserve interest rate cut next month.

While a weaker dollar and lower U.S. Treasury yields may offer some support at open, uncertainty around progress on a potential U.S.-India trade deal may keep traders guarded and could lead to some volatility as the session progresses.

Benchmark indexes Sensex and Nifty ended modestly lower on Tuesday amid monthly expiry of Nifty F&O contracts for the November series. The rupee settled 6 paise lower at 89.22 against the U.S. dollar.

Foreign investors net bought shares worth Rs 785 crore on Tuesday, while domestic institutional investors net bought shares to the extent of Rs 3,912 crore, according to provisional exchange data.

Asian stocks extended their gains into a third day, and gold edged up as the dollar eased and the yield on the benchmark U.S. 10-year slipped to below 4 percent for the first time in almost a month on Fed rate-cut bets.

Oil was little changed after closing at the lowest in a month on Tuesday amid signs of progress toward a peace deal in Ukraine.

Overnight, U.S. stocks rose for a third consecutive session as new data helped reinforce bets that the Federal Reserve will cut interest rates in December.

Retail sales increased less than expected in September, while wholesale inflation picked up from a month earlier on higher energy and food costs.

Consumer confidence lost momentum in November, reaching its lowest level in seven months because of anxiety about jobs and the economy.

ADP reported rising weekly layoffs, with losses amounting to 13500 in each of the past four weeks.

Meanwhile, Treasury yields fell after White House National Economic Council Director Kevin Hassett emerged as the front-runner to serve as the next Fed chair.

The Dow jumped 1.4 percent, the S&P 500 climbed 0.9 percent and the tech-heavy Nasdaq Composite gained 0.7 percent.

European stocks closed on a firm note on Tuesday amid signs of progress in talks to end the war in Ukraine.

The pan European Stoxx 600 advanced 0.9 percent. The German DAX rallied 1 percent, while France's CAC 40 and the U.K.'s FTSE 100 both surged by 0.8 percent.