Sensex, Nifty Set To Drift Lower As Focus Shifts To Fed Policy
(RTTNews) - Indian shares may open lower on Wednesday, mirroring weak global cues as investors await the Fed's interest-rate decision and Chair Jerome Powell's press conference later in the day for directional cues.
The Federal Reserve is widely expected to raise interest rates by another 75 basis points, although some see an outside chance for a 100-basis point rate hike.
Benchmark indexes Sensex and the Nifty rose about 1 percent each on Tuesday while the rupee settled 7 paise higher at 79.74 against the greenback.
Asian markets traded deep in the red, gold traded flat, and the dollar held steady, while oil extended overnight losses on worries about the outlook for energy demand.
The yield on two-year U.S. Treasury notes rose to almost a 15-year high and that on the benchmark ten-year note jumped to a new eleven-year high amid expectations of further policy tightening
U.S. stocks fell sharply overnight, and Treasury yields surged to multi-year highs as caution gripped markets ahead of the Fed's rate hike announcement.
Ford's warning of big problems with supply chains and input costs also raised concerns about earnings outlook.
The Dow and the tech-heavy Nasdaq Composite both shed around 1 percent while the S&P 500 dropped 1.1 percent.
European stocks ended lower on Tuesday as a measure of German producer prices soared to record levels and a full-point increase by Swedish central bank exceeded forecasts.
The pan European Stoxx 600 fell 1.1 percent. The German DAX gave up 1 percent, France's CAC 40 index declined 1.4 percent and the U.K.'s FTSE 100 dipped 0.6 percent.
German Economy Stuck In Recession
U.S. Dollar Slides Against Majors
FTSE 100 Advances Over 0.7% On Surprise Drop In Inflation Rate
Pound Rebounds After U.K. CPI Data
CAC 40 Modestly Higher After Inflation Data
DAX Rises Nearly 0.5% As Bond Yields Drop Slightly
Sensex, Nifty End Modestly Higher; Financials Underperform
