Indian shares are anticipated to open on a subdued note on Wednesday, as investors keenly await crucial domestic and U.S. inflation data, as well as the results of a significant economic policy meeting in China set for this week. This meeting is expected to outline key policies and growth targets for the coming year.
On Tuesday, the benchmark indices, Sensex and Nifty, fluctuated before closing with marginal changes.
The rupee remained stable at near-record lows, closing at 84.85 against the U.S. dollar, as the recent change in leadership at the Reserve Bank of India has fueled expectations of a potential shift in the central bank's monetary policy. Consequently, market participants are now anticipating a possible rate cut in the forthcoming monetary policy meeting scheduled for February.
In Asian trading, the dollar edged slightly lower as traders closely observed increasing tensions in Syria and awaited critical U.S. inflation data expected this week, which could potentially affect the Federal Reserve's interest rate decisions.
Gold prices climbed above $2,700 per ounce, reaching a two-week high, driven by geopolitical tensions and anticipation of another Federal Reserve rate cut next week.
On Tuesday, the Israeli military revealed that it had carried out approximately 480 airstrikes over the past 48 hours, focusing on key military installations across Syria following the collapse of President Bashar al-Assad's government.
Oil prices increased slightly ahead of the release of a monthly report from OPEC, which is expected to provide a comprehensive market overview.
Traders were also reacting to media reports indicating that the U.S. is considering implementing stricter sanctions on Russia's oil trade to limit its war efforts, with potential measures targeting specific exports.
In the U.S., stock markets closed lower overnight, unable to maintain early gains as investors awaited the upcoming CPI report, which could reflect another increase in the annual headline figure. The Dow Jones Industrial Average dipped by 0.4 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both decreased by around 0.3 percent.
In Europe, stock markets ended lower on Tuesday, breaking an eight-session losing streak. Weaker-than-expected Chinese trade data hinted at escalating trade challenges. The pan-European STOXX 600 index declined by 0.5 percent. Germany's DAX closed slightly lower, France's CAC 40 fell by 1.1 percent, and the U.K.'s FTSE 100 dropped by 0.9 percent.
