First Tick: Top Global Cues to Watch Ahead of Today’s Market Open
US-China tariff pause lifts oil prices; Sensex and Nifty expected to open flat on August 12. Global market updates, fund flows, and key economic cues to watch today.
Global markets show mixed signals with oil prices rising and US-China tariff pause easing trade war concerns ahead of key inflation data.
Following the US and China's agreement to prolong a halt on tariff increases, oil prices increased on Tuesday, allaying concerns that their trade disputes would worsen and impede global economic expansion.
Following the GIFT Nifty, which opened Tuesday morning at 24,567.50, indicating a cautious start for domestic markets, the Indian benchmark indices, the Sensex and Nifty, are anticipated to open flat today.
Market Recap: A Good Week to Start
Following six weeks of declines, Indian markets saw a positive turnaround on Monday. The Sensex closed at 80,604.08, up 746 points (0.93%), and the Nifty closed at 24,585.05. It had gained 221.75 points (0.91%). With the exception of consumer durables, most sectors saw widespread buying, which helped the midcap and smallcap indices close higher by 0.8% and 0.35%, respectively.
Highlights of the Global Market
- Asian Markets: Ahead of a significant US inflation report that may have an impact on Federal Reserve interest rate decisions, Asian stocks opened higher on relief from the US-China tariff truce.
- US Markets: Investor caution ahead of inflation data and ongoing trade developments caused Wall Street to close lower Monday. The Nasdaq dropped 0.3%, the S&P 500 lost 0.25%, and the Dow Jones fell 0.45%.
- Bond Yields: In early trading on Tuesday, the yields on US Treasuries with maturities of 10 and 2 years stayed stable.
- Dollar Index: As markets awaited important consumer inflation data that was anticipated later in the day, the US dollar remained stable.
- Asian Currencies: In the early sessions, there was mixed trading between Asian currencies and the US dollar.
Update on Commodities
- Crude Oil: Following the tariff pause, prices increased on optimism that the two biggest oil consumers in the world would not experience a decline in demand.
- Gold: Gold prices remained under pressure due to continued market uncertainty and the need for official policy clarification, even after former President Trump recently declared that US tariffs would not be applied to gold imports.
A snapshot of the fund flow
Strong domestic support for Indian markets was demonstrated on August 11 when Domestic Institutional Investors (DIIs) purchased shares worth ₹5,972 crore and Foreign Institutional Investors (FIIs) sold stocks worth over ₹1,200 crore.
Investors are urged to remain cautious but hopeful as markets prepare for important economic data this week.
I hope you have a successful trading day!
