Indian equities might open lower on Friday, influenced by weak global markets amid concerns about the U.S. Federal Reserve's ability to engineer a soft landing for the world's largest economy.
Global market sentiment remains fragile due to worries about the rapid deceleration of U.S. growth and persistently high inflation. Recent PMI data from the Eurozone also suggests a challenging outlook for the region's manufacturing sector.
On Thursday, benchmark indices Sensex and Nifty concluded the trading session with modest gains after reaching new record highs earlier in the day.
Asian markets mirrored Wall Street's downturn this morning, with Japan's Nikkei dropping over 4 percent as the yen and Swiss franc appreciated on increased safe-haven demand.
U.S. Treasury yields saw a significant decline, with yields on the 2-year and 10-year notes falling to their lowest levels in six months, dropping below 4 percent.
In Asian trading, gold prices edged higher in anticipation of the crucial U.S. employment data expected later today. Meanwhile, oil prices showed a slight uptick but remain on track for a fourth consecutive weekly decline due to ongoing demand concerns overshadowing geopolitical tensions in the Middle East.
U.S. stocks sank overnight as disappointing economic data reignited recession fears, overshadowing positive earnings reports from Meta Platforms, the parent company of Facebook, and optimism about potential near-term interest rate cuts by the Federal Reserve. Initial gains were erased as data indicated a steep contraction in manufacturing activity for July and an 11-month high in weekly jobless claims.
The tech-heavy Nasdaq Composite declined by 2.3 percent, the S&P 500 fell 1.4 percent, and the Dow dropped 1.2 percent.
European stocks also experienced significant declines on Thursday following the release of discouraging Eurozone PMI and unemployment figures. Concurrently, the Bank of England reduced interest rates for the first time in over four years and hinted at further cautious cuts.
The pan-European STOXX 600 index decreased by 1.2 percent. Germany's DAX fell by 2.3 percent, France's CAC 40 by 2.1 percent, and the U.K.'s FTSE 100 by 1 percent.
