Shares in India are slated for a promising start on Tuesday, following several promising indicators within the country's macroeconomic landscape. January data revealed India's retail inflation rate has eased down to a three-month record low of 5.1%, primarily due to subdued food prices. On the other hand, December's industrial production reflected a stronger-than-expected expansion at an annual rate of 3.8%.
On Monday, India's leading indices, Sensex and Nifty reported a decrease by roughly 0.7% and 0.8% respectively, while the rupee appreciated by seven paise, closing at 83 against the US dollar.
Asian markets showcased a mixed performance, with the Japanese and South Korean markets making gains as trading resumed post their long holiday weekend. Investors have their eyes set on the upcoming US inflation data that may shed light on potential reductions in interest rates.
Commodity markets witnessed rather little alterations. Gold recorded minimal changes following a lower closing during the overnight trading session in the US. Meanwhile, crude oil prices marked a slight increase after a flat end on Monday, influenced by concerns over demand and uncertainty regarding the pace of potential US interest-rate cuts.
US stocks displayed a mixed trend. Investor apprehension over critical inflation data and a Federal Reserve Bank New York survey contributed to the mixed trend. This survey saw consumer expectations for both one-year and five-year inflation growth remain unchanged at 3% and 2.5% respectively in January. Dow Jones gained marginally, closing at a new record high, while Nasdaq Composite and the S&P 500 Index reported minor losses.
In contrast, European stocks concluded on a positive note on Monday, following optimistic comments from European Central Bank official, Fabio Panetta, indicating that a period for interest rate reductions was imminent. This led the pan European STOXX 600 to increase by half a percent, the German DAX to climb by 0.7%, France's CAC 40 to rise by 0.6%, and the U.K.'s FTSE 100 to finish slightly higher.
