Indian shares are poised to open on a positive note Monday, buoyed by optimism surrounding potential U.S. rate cuts and the continued decline in oil prices due to the prospect of increased OPEC+ supply.Nevertheless, gains may be limited by mixed global cues and disappointing GDP data released on Friday. India’s GDP growth for the April-June quarter of fiscal 2024-25 fell to a 15-month low of 6.7 percent, down from 8.2 percent in the same period last year, as reported by the National Statistical Office (NSO). This decline is attributed to subdued government expenditure and low consumer spending.India’s forex reserves reached an all-time high of USD 681.688 billion for the week ended August 23, while GST collections increased by 10 percent in August compared to the same period last year, according to separate data releases.Trading sentiment this week may be influenced by monthly auto sales figures and reports on manufacturing and services PMI.Asian markets exhibited a subdued tone this morning after official data revealed that China’s factory activity contracted for the fourth consecutive month in August.Gold prices dipped below $2,500 per ounce, and the dollar hit a two-week high against the euro ahead of a crucial U.S. jobs report scheduled for later in the week.Oil prices declined by about 1 percent, extending Friday’s losses, amid concerns about China’s demand and indications that OPEC+ will proceed with plans to increase output starting in October. Brent crude futures for November fell toward $76 a barrel after losing more than 2 percent on Friday.U.S. stock markets rallied on Friday as recession fears waned and the Personal Consumption Expenditures index showed that prices rose in line with expectations in July, bolstering bets that the Federal Reserve is on track for a policy adjustment in September. Data indicated that the Federal Reserve’s preferred inflation gauge increased on a monthly basis from 0.1 percent in June to 0.2 percent in July, while holding steady at 2.5 percent annually.The Dow rose 0.6 percent to reach a new record closing high, the S&P 500 added 1 percent, and the tech-heavy Nasdaq Composite surged 1.1 percent.European stocks ended virtually unchanged on Friday, despite recent Eurozone and U.S. inflation data reinforcing expectations of multiple rate cuts. The pan-European STOXX 600 ended flat with a slight positive tilt, while Germany’s DAX, France’s CAC 40, and the U.K.’s FTSE 100 all closed marginally lower.The material has been provided by InstaForex Company – www.instaforex.com
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