Global Market Cues: Asian Shares Trade Lower, Crude Climbs; India Seen Opening Lower 

Mumbai, August 7: Indian benchmark indices are expected to open on a negative note on Friday, as Asian shares decline and crude oil prices climb as investors remain wary of Middle East despite diplomatic progress.  

Muted cues from Wall Street will also weigh as investors await the crucial U.S. non-farm payrolls report later in the day. 

There have been signs of progress in negotiations between the United States and Iran. At the same time, investors remain wary of taking aggressive positions before the U.S. jobs data, which could shape expectations around the Federal Reserve’s interest-rate trajectory. 

Asian Markets Trade Lower Ahead of U.S. Payrolls 

Asian equities traded lower in early Friday trading as investors weighed easing geopolitical risks against lingering uncertainty over the global economic outlook. 

Japan’s Nikkei declined 0.98% after a stronger yen, while South Korea’s Kospi declined 0.95%. 

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed, reflecting the market’s wait-and-watch approach ahead of the U.S. employment report. 

The U.S. dollar remained under pressure against major currencies, while Treasury yields were broadly steady. Oil prices climbed. 

Wall Street Ends Lower as Tech Stocks Drag 

U.S. equities closed lower on Thursday. 

The Dow Jones Industrial Average fell 0.85%, while the S&P 500 slipped 0.18%. The Nasdaq Composite edged down 0.06%. 

Technology shares remained under pressure after disappointing earnings from software companies AppLovin and Datadog, while chipmakers also weighed on sentiment. 

The decline, however, remained limited as investors continued to monitor diplomatic progress between Washington and Tehran, which has reduced fears of supply disruptions in the Middle East. 

Market participants also refrained from making large bets ahead of Friday’s U.S. payrolls report, which is expected to provide fresh clues on the timing and extent of future Federal Reserve rate cuts. 

European Shares Scale Fresh Record Highs 

European equities continued their record-breaking run on Thursday, providing one of the strongest positive signals for global investors. 

The pan-European STOXX 600 index rose 0.2% to close at another all-time high, extending gains for a third consecutive session. 

Investor confidence was boosted by robust corporate earnings and optimism that improving U.S.-Iran relations could eventually ease restrictions around the Strait of Hormuz, reducing risks to global energy supplies. 

Strong earnings also reinforced expectations that European companies may continue delivering resilient profit growth despite a slowing global economy. 

Among major movers, Deutsche Telekom advanced after announcing an expanded share buyback programme, while advertising giant WPP rallied after reporting results. Hikma Pharmaceuticals also gained following upbeat results. 

On the downside, Siemens and defence contractor Rheinmetall slipped, limiting broader gains in the region. 

Indian Markets Likely to Open Negative 

The global setup suggests Indian equities could begin Friday’s session on a negative note ahead of the U.S. jobs report. 

Higher crude oil prices will weigh on India, raising concerns around inflation and the current account deficit.  

Investors will also monitor domestic earnings, institutional flows and sector-specific developments for further direction. 

Overall, while Wall Street paused after its recent rally, record highs in Europe, slipping Asian markets and climbing energy prices provide a negative backdrop for Indian equities. The key trigger for global markets later in the day will be the U.S. employment data, which could determine the next leg of movement across equities, bonds and currencies. 

Source

•  Exchanges