Indian stocks are poised to see a modest uptick at the start of trading on Monday. This optimism comes as investors take cues from positive developments across Asian markets, a slew of earnings reports from local firms, and a significant dip in oil prices.
Reliance Industries, a market heavyweight, is likely to attract attention today as its shares begin trading on an ex-bonus basis. Asian markets showed modest gains earlier in the day as investors looked forward to a series of crucial economic indicators, including reports on Chinese economic activity, growth figures from the Eurozone and the U.S., as well as the vital U.S. payrolls report. Furthermore, earnings results from major corporations, such as Apple, Microsoft, Alphabet, Amazon, and Meta Platforms, are expected to provide further market direction this week.
In Japan, the Nikkei index was up by 1.6%, buoyed by a weaker yen. This surge followed the failure of Japan's ruling coalition to secure a parliamentary majority, fueling speculation that political instability might influence the central bank's approach to raising interest rates.
The price of gold declined due to the strengthening of the dollar, amid ongoing speculation regarding the 2024 U.S. presidential race. Meanwhile, both Brent crude and West Texas Intermediate saw prices drop by over 4% during early Asian trading. This decline occurred following Israeli airstrikes on Iran, which notably spared key oil facilities.
In the U.S., the stock market closed with mixed results on Friday. Investors are gearing up for a week filled with earnings reports and economic data. Adding to the positive sentiment, a survey revealed an unexpected uptick in U.S. consumer confidence in October. The Dow Jones Industrial Average decreased by 0.6%, marking its fifth consecutive day of losses. The S&P 500 also saw a slight decline, while the Nasdaq Composite gained 0.6%, driven by the strong performance of Tesla shares.
European stocks ended Friday on a slightly lower note as the third-quarter earnings season gained momentum. The pan-European STOXX 600 remained largely unchanged, exhibiting a slight negative trend. Germany's DAX index inched up by 0.1%, while France's CAC 40 experienced a minor drop, and the U.K.'s FTSE 100 fell by 0.3%.
