Global Markets Preview: Key Economic Indicators to Watch on Trading Day

Indian Equity Indices Eye Muted Start on June 3

The Indian equity benchmark indices, the BSE Sensex and Nifty 50, are expected to begin the day on a subdued note on June 3, as indicated by the GIFT Nifty, which was trading flat at approximately 23,481 in early trade.

The previous day, June 2, saw the Indian benchmark indices close higher in a volatile trading session. The Nifty 50 finished comfortably above the 23,450 mark, driven by broad-based buying across most sectoral indices. The Sensex ended the day up 382.50 points or 0.52 percent at 74,649.84, while the Nifty was up 100.95 points or 0.43 percent at 23,483.55.

Global Markets

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In the global markets, Asian stocks followed the lead of Wall Street, rising as renewed enthusiasm for the artificial-intelligence trade drove US equities to new records. The MSCI Asia Pacific Index climbed 0.3% to an all-time high, with stocks in Japan and Australia rising as South Korea was shut for a holiday. The yen hovered near 160 per dollar.

The S&P 500 and the Dow closed modestly higher on Tuesday, as risk appetite driven by AI fervor was counterbalanced by tensions arising from U.S.-Iran talks to reopen the Strait of Hormuz and end the months-long war. The Dow Jones Industrial Average rose 228.91 points, or 0.45%, to 51,307.79, while the S&P 500 gained 9.94 points, or 0.13%, to 7,609.90.

Currency and Bond Markets

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Against a basket of currencies, the dollar was steady at 99.23, having risen slightly overnight. The yield on the U.S. 10-year Treasury and 2-year Treasuries was up 1 basis point at 4.45% and 4.05%, respectively.

The Asian currency basket showed mixed performance against the US dollar, with the Philippine Peso emerging as the strongest currency, gaining 0.102% against the dollar.

Commodities

Oil prices climbed more than 1% in early trade on Wednesday as hostilities in the Middle East erupted anew with Iran firing missiles at Kuwait and Bahrain, while diplomatic talks between Iran and the United States showed little progress. Gold prices slipped on Wednesday, as renewed hostilities in the Middle East pushed crude oil prices higher, cementing fears that interest rates would stay higher for longer to tame inflation.

Market Flows

Foreign Institutional Investors (FIIs) remained net sellers for the fifth consecutive trading session on June 2, offloading equities worth Rs 8,362 crore. In contrast, Domestic Institutional Investors (DIIs) continued to provide support to the market, purchasing equities worth Rs 9,589 crore during the session.