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The SGX Nifty is indicating a slightly lower start for the broader index on Thursday, with a loss of 11 points. SGX futures stood at 18,823.
In the US markets, stock futures remained mostly flat after the Federal Reserve decided not to implement a rate hike at its recent meeting but hinted at the possibility of two more rate hikes later this year. Dow Jones Industrial Average futures saw a marginal increase of 2 points, or 0.01 percent. S&P 500 and Nasdaq-100 futures experienced slight gains of 0.07 percent and 0.11 percent, respectively.
European markets closed higher on Wednesday as investors anticipated an announcement from the Federal Reserve regarding a pause in rate hikes. The benchmark Stoxx 600 index ended the day 0.5 percent higher, with most sectors in positive territory. Mining stocks were the top gainers, climbing by 2.5 percent, while travel and leisure stocks dipped by 1.1 percent. The UK economy's growth of 0.2 percent in April, in line with expectations and driven by services, was also noted.
Asian markets are expected to rise following the decision by the US Federal Reserve to hold off on a rate hike while projecting the likelihood of two more quarter percentage point increases before the year ends. The Fed's key borrowing rate remains in a target range of 5%-5.25%, and the central bank foresees a potential increase to as high as 5.6 percent by the end of 2023.
Oil prices declined on Wednesday after the US Federal Reserve's projection of additional interest rate hikes raised concerns about future demand. This came shortly after government data revealed an unexpected large build in US crude oil stocks. Brent crude futures settled 1.5 percent lower at $73.20 a barrel, while US West Texas Intermediate (WTI) crude closed 1.7 percent lower at $68.27. Both benchmarks had initially risen more than 1.5 percent earlier in the session, driven by expectations of increased fuel demand following China's central bank reducing a short-term lending rate.
The Dollar index traded 0.33 percent lower in futures at 102.58, while the value of one dollar remained near Rs 82.04.
Gold prices initially increased but later pared gains after the US Federal Reserve announced no change in interest rates, as widely anticipated, but indicated the possibility of future rate hikes. Spot gold was up 0.1 percent at $1,945.19 per ounce, while US gold futures settled 0.5 percent higher at $1,968.9.
According to provisional data from the National Stock Exchange, foreign institutional investors (FIIs) purchased shares worth Rs 1,714.72 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 654.77 crore on June 14
