Sensex, Nifty Seen Tad Lower On Weak Global Cues

(RTTNews) - Indian shares may open flat to slightly lower on Wednesday, tracking weak cues from global markets.

Major indexes are likely to move in a narrow range as investors await the minutes from the Federal Reserve's most recent monetary policy meeting and Fed Chair Jerome Powell's speech at the Jackson Hole Economic Symposium for clues on the U.S. interest-rate cuts this year.

Traders are currently pricing in a 69.5 percent likelihood of a 25 basis-point reduction of the Fed funds target rate at the September policy meeting, and a 30.5 percent chance of a super-sized cut of 50 basis points, according to CME's FedWatch tool.

Benchmark indexes Sensex and Nifty ended up around half a percent each on Tuesday while the rupee gained 8 paise to close at 83.79 against the dollar, buoyed by weak American currency and lower crude oil prices.

Asian markets were broadly lower this morning, with benchmark indexes in Hong Kong and Japan falling around 1 percent.

The U.S. dollar hit its lowest level this year against the euro after 30-year yields fell to a two-week low.

Gold traded close to a record high set on Tuesday while oil extended recent losses as estimates showed swelling U.S crude inventories.

U.S. stocks ended modestly lower overnight after notching their longest rally this year on easing concerns about a potential recession.

Yields on government debt fell broadly after a survey of non-manufacturing activity from the Philadelphia Fed continued to reflect weakness in August.

The tech-heavy Nasdaq Composite shed 0.3 percent and the S&P 500 slipped 0.2 percent to snap eight-day winning streaks while the Dow eased 0.2 percent.

European stocks broke a five-day winning streak on Tuesday as a drop in energy stocks outweighed investor optimism over rate cuts in the U.S.

The pan European STOXX 600 fell half a percent. The German DAX dipped 0.4 percent, France's CAC 40 slid 0.2 percent and the U.K.'s FTSE 100 lost 1 percent.