Sensex, Nifty Seen Opening Up As Yields Ease

Indian shares may open higher on Thursday as investors react to easing Treasury yields and comments from Chicago Fed President Austan Goolsbee that Tuesday’s hotter-than-expected inflation reading doesn’t mean the central bank won’t be able to cut interest rates in 2024.

Fed Vice Chair for Supervision Michael Barr, meanwhile, noted that it’s too early to determine if the U.S. economy can have a soft landing.

In corporate news, Paytm parent, One97 Communication Ltd, may see further downside today after the company confirmed that it has received notices from the Enforcement Directorate (ED), requesting information on customers who have conducted business with its group companies.

Benchmark indexes Sensex and Nifty ended around half a percent higher on Wednesday, revering from an early slide. The rupee gained five paise to close at 83.03 against the dollar.

Asian stocks followed Wall Street higher this morning and U.S. stock futures were little changed as Treasuries held steady after a rally on Wednesday.

The Japanese yen ticked higher against the dollar for a second consecutive session despite weak data showing Japan unexpectedly slipped into recession.

Elsewhere, Australian jobless rate climbed to a two-year high, signaling a potential labor market slowdown.

The dollar paused while gold was marginally higher after mixed comments from Fed officials.

Oil extended overnight losses after EIA data showed a big increase in crude inventories in the U.S. in the week ended February 9th.

U.S. stocks rose sharply overnight after having suffered heavy losses in the previous session on concerns over elevated inflation and interest rates staying higher for longer.

A calmer bond market amid little economic news helped lift the tech-heavy Nasdaq Composite up 1.3 percent, while the S&P 500 climbed 1 percent and the Dow edged up 0.4 percent.

European stocks advanced Wednesday on the back of tame U.K. inflation data and some encouraging corporate earnings updates.

The pan European STOXX…