Indian shares are poised to open on a positive note this Monday, despite receiving weak signals from global markets.
Investor sentiment appears to receive a boost from Narendra Modi's swearing-in as Prime Minister for a rare third term at the Rashtrapati Bhavan on Sunday.
The Union Cabinet for the 18th Lok Sabha has been constituted with 30 cabinet ministers, five ministers of state with independent charge, and 36 ministers of state.
The Bharatiya Janata Party (BJP) has kept at least 31 ministers from the previous cabinet, including key figures such as Amit Shah, Rajnath Singh, Nirmala Sitharaman, S. Jaishankar, and Nitin Gadkari.
As the week unfolds, attention will be on India's retail inflation and industrial output data, as well as the inflation readings from the U.S. and U.K., and central bank meetings in the U.S. and Japan.
Asian stock markets showed mixed performance this morning. Markets in Australia, China, Hong Kong, and Taiwan were closed due to public holidays.
The dollar strengthened, gold traded higher just below $2,300 per ounce, and oil remained steady after three consecutive weeks of losses.
On Friday, U.S. stocks finished slightly lower as a stronger-than-expected jobs report pushed Treasury yields higher, casting doubt on whether the Federal Reserve will reduce interest rates this year.
The 10-year Treasury yield increased by 14 basis points to over 4.4 percent following data indicating that non-farm payroll employment surged by 272,000 jobs in May, significantly above analysts' expectations of 185,000 and up from 165,000 in April.
Average hourly earnings also exceeded expectations, although the jobless rate rose to 4 percent, the highest since January 2022.
The S&P 500 edged down by 0.1 percent, while both the Dow Jones Industrial Average and the tech-heavy Nasdaq Composite declined approximately 0.2 percent.
In Europe, stocks closed lower on Friday as optimism for U.S. interest rate cuts diminished. The pan-European STOXX 600 dipped by 0.2 percent, while Germany's DAX, France's CAC 40, and the U.K.'s FTSE 100 each fell by around 0.5 percent.
