Indian stock markets are expected to open strong on Thursday, December 11, following a positive trend in global markets. The Federal Reserve has cut its benchmark interest rate by 0.25 basis points, which has led to a surge in Asian markets.
Asian equities have advanced, with the MSCI Asia Pacific Index climbing 0.5% in early trade. The Hang Seng futures are up 0.3%, while Japan's Topix has edged 0.1% higher. The S&P/ASX 200 in Australia has risen 0.7%.
On Wall Street, the S&P 500 rose 0.67% to 6,886.68, while the Dow Jones Industrial Average gained 1.05% to 48,057.75. The Nasdaq Composite added 0.33% to finish at 23,654.16.
The Federal Reserve has cut its benchmark interest rate to around 3.6%, the lowest level in nearly three years. The move is expected to ease borrowing costs for mortgages, auto loans, and credit cards. However, the central bank has signaled that it may pause further rate cuts in the coming months.
Chair Jerome Powell noted that the central bank is positioned to step back and observe how the labor market and inflation evolve. The Fed officials also signaled that they anticipate only one additional rate cut next year.
The Gift Nifty futures are trading near 25,966, up 131 points or 0.5% from the previous close. This indicates a robust start for the Sensex and Nifty 50.
The Indian stock market had fallen for the third session in a row on Wednesday, with the Sensex closing 275 points lower at 84,391.27. The Nifty 50 dropped 82 points to end at 25,758.
The US dollar has weakened against major currencies, with the euro rising 0.6% to $1.1691. Gold prices have edged higher, with spot gold rising 0.3% to USD 4,242.39 per ounce. Oil prices have climbed for a second straight session, with Brent crude rising 0.4% to USD 62.48 a barrel.
A potential India-US trade deal is also in the works, with US Representative Bill Huizenga noting the expanding economic and strategic scope of the India-US partnership. The deal is expected to further strengthen ties between the two countries.
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