Sensex, Nifty Seen Higher At Open As Dollar And Yields Ease

Indian shares look set to open higher on Monday as weak U.S. economic data released on Friday added to optimism about the Federal Reserve eventually cutting interest rates.

The upside, however, may remain limited as oil extended gains after climbing over 2 percent to a four-month high on Friday amid rising tensions in the Red Sea and Middle East as well as OPEC’s decision to extend output cuts.

Israel boycotted Gaza ceasefire talks in Cairo after Hamas rejected its demand for a complete list naming hostages that are still alive.

PMI data for the services sector, rupee movement and the pattern of FII flows may sway market sentiment as the week progresses. Stock exchanges BSE and NSE will remain closed on Friday for Mahashivratri.

Globally, a testimony by the Fed Chair Jerome Powell and U.S. jobs data will be in focus this week.

The 30-share BSE Sensex surged 0.9 percent and the broader NSE Nifty gained 0.7 percent last week, buoyed by impressive GDP data.

Asian stocks traded mixed this morning, with Chinese and Hong Kong markets declining as China’s annual legislative session kicked off.

Japan’s Nikkei 225 average surpassed 40,000 for the first time after reports the government is considering declaring an end to deflation.

The dollar index eased and gold eyed record highs while oil steadied near the highest level this year.

U.S. stocks closed higher on Friday as Dell reported strong Q4 earnings and weak manufacturing and consumer sentiment data sent 2-, 10- and 30-year Treasury yields to around three-week lows.

The tech-heavy Nasdaq Composite and the S&P 500 jumped 1.1 percent and 0.8 percent, respectively to reach new record closing highs while the Dow edged up 0.2 percent.

European stocks ended Friday’s session broadly higher as data showed Eurozone inflation softened for the second straight month in February.

The pan European STOXX 600 gained 0.6 percent. The German DAX rose 0.3 percent, France’s CAC 40 inched up marginally and the U.K.’s FTSE 100 added 0.7…