Asian Markets Mixed, US Futures Advance; Cautious Start Seen for Dalal Street

Mumbai, July 6: Indian equity benchmarks are set for a cautious start on Monday, tracking cues across mixed Asian markets, easing crude oil prices, advancing US stock futures and expectations that the US Federal Reserve will not raise rates later this year.  

Investors are also awaiting a packed week of global economic data and the start of the earnings season in the US.  

Asian equities trade higher  

Asian shares traded mixed, with MSCI’s broadest index of Asia-Pacific shares outside Japan advancing 0.4%. Japan’s Nikkei was down 1.2%, while South Korea’s Kospi was down 2% and Hong Kong’s Hang Seng was up 1%.  

The mixed mood reflected investors remained cautious ahead of key macroeconomic events later this week, including the release of minutes from the US Federal Reserve’s latest policy meeting. Market participants continue to expect the Fed to keep rates unchanged.  

US futures in the green  

Wall Street was closed on Friday for the US Independence Day holiday, but futures indicated a positive start.  

Nasdaq futures climbed 0.6%, while S&P 500 futures inched up 0.2%, supported by optimism surrounding the upcoming earnings season. Investors are particularly optimistic about technology companies expected to benefit from continued artificial intelligence-driven spending.  

Oil slips after OPEC+ output hike  

Crude oil prices eased after OPEC+ agreed to increase its production target by another 188,000 barrels per day from August, marking the fifth straight monthly increase in output quotas.  

Brent crude slipped below the $72-a-barrel mark as traders anticipated improving global supplies, with exports from the Gulf region continuing to recover.  

Lower crude prices are generally viewed as a positive for India, one of the world’s largest oil importers, as they help contain inflation, improve the current account balance and reduce costs for energy-intensive industries.  

Focus shifts to Fed and earnings  

Markets are increasingly confident that the Federal Reserve will leave interest rates unchanged after recent US data pointed to moderating inflation and a gradual cooling in the labour market.  

Investors will now closely monitor the minutes of the Fed’s previous policy meeting later this week for clues on the timing of future rate cuts.  

Meanwhile, the global earnings season is set to begin, with investors watching results from major US companies for fresh insights into corporate profitability and economic resilience.  

Samsung earnings in focus  

In Asia, attention is also turning to corporate earnings, with Samsung Electronics expected to report a sharp increase in quarterly profit, driven by strong demand for high-end memory chips used in artificial intelligence applications.  

The results are expected to provide further clues on the strength of AI-led technology spending, a key driver of global equity markets over the past year.  

Mixed cues for Indian markets  

The combination of mixed Asian equities, firmer US futures and softer crude oil prices provides mixed global cues for Indian equities at the start of the week.  

Investors are likely to remain cautious amid a busy calendar of global economic releases, central bank commentary and the onset of the corporate earnings season, all of which could influence market direction in the coming days.  

Source: Exchanges