Risk sentiment was also capped as hawkish comments from Federal Reserve officials kept near-term US rate cut expectations in check in a boost to the dollar
The 10-year US Treasury yield fell by 8 basis points to 4.32 per cent on Thursday
Even though the Fed sees only 25 bps of cut, the futures market is pricing in 44 bps of cuts in 2024
European markets are also set to open slightly higher, with EUROSTOXX 50 futures up 0.3 per cent and the FTSE futures gaining 0.4 per cent
US bond yields rose after the economy created far more jobs than expected in May
The rupee closed at 83.3725 against the US dollar on Friday, up 0.1 per cent for the week
The US Fed interest rate decision, domestic inflation data and global trends would be key driving factors in dictating movement in the market this week, as the Lok Sabha elections outcome and the RBI policy decision are behind us, analysts said. The past week was a roller-coaster ride for investors as markets swung sharply in both directions before closing with strong gains. In an eventful week, the BSE benchmark jumped 2,732.05 points or 3.69 per cent and the Nifty zoomed 759.45 points or 3.37 per cent. The 30-share BSE Sensex jumped 1,720.8 points or 2.29 per cent to hit a new record peak of 76,795.31 in day trade on Friday. The benchmark ended at a record high of 76,693.36, up 1,618.85 points, or 2.16 per cent. "Now the Lok Sabha elections and the RBI policy decision are settled, attention now turns to global factors. Key areas to watch include the US Fed interest rate decision, the rupee's movement against the dollar, crude oil prices and commodity prices. "Additionally, ...
Holidays in the United States and UK made for thin trading ahead of Friday's figures on core personal consumption expenditures
Economists expect the personal consumption expenditures price index minus food and energy, due on Friday, to rise 0.2 per cent in April
Traders are pricing in 47 basis points of easing this year from the Fed, with a rate cut in November fully priced in
Indices post biggest gains in two weeks
'If you have higher rates and - God forbid - stagflation, you will see stress in real estate and leveraged companies, and private credit,' Dimon said
Core US inflation slowed to an annualised 3.6 per cent in April, Wednesday's data showed
Gold marched back toward record levels, and crude oil added to gains after rebounding strongly
Spot gold rose 0.4% to $2,367.29 per ounce, as of 1322 GMT. U.S. gold futures rose 0.6% to $2,372.70
Fed Chairman Jerome Powell has downplayed the potential for rate hikes this year and recent data showed cooling in the labor market
The yuan slid to a two-week low versus the dollar after US President Joe Biden unveiled steep tariff increases on an array of Chinese imports
MSCI's broadest index of Asia-Pacific shares outside Japan climbed slightly and hit its highest since early 2023
There are also reports Chinese authorities are laying the groundwork for a sale of 1 trillion yuan ($138.39 billion) in longer-dated bonds to help fund stimulus spending at home
Inflation has been largely stalled for the first three months of the year at a rate, roughly 2.7%, that policymakers regard as still too far above their target to declare the job finished