Indian Shares Seen Little Changed With Focus On Trade Deal

(RTTNews) - Indian markets look set to open on a flat note Wednesday as investors watch the latest developments on the India-U.S. trade deal.

Union commerce minister Piyush Goyal highlighted the signing of a term contract for the import of 2.2 million tons per year of LMG from the U.S. as a sign of the "strong bond" between India and the U.S. while adding that there could be "good news" on a trade deal once it becomes "fair, equitable, and balanced".

Separately, a senior Trump administration official has said that a trade deal between India and the US can be worked out "soon".

Benchmark indexes Sensex and Nifty ended slightly lower on Tuesday on the back of weak cues from global markets.

The rupee settled 2 paise lower at 88.61 against the dollar, with the downside capped by modest portfolio inflows and intermittent dollar sales from state-run banks.

Asian markets steadied this morning after a three-day sell-off. The dollar held gains against the yen after reaching a 9-1/2-month high.

Oil prices were marginally lower as data showing rising U.S. stockpiles offset concerns about the fallout from Western sanctions on Russia.

Gold traded flat with a negative bias as investors await cues from the Federal Reserve's latest policy meeting and U.S. jobs data.

U.S. stocks ended deep in the red overnight to reach their lowest levels in a month due to worries about an AI bubble, dwindling rate cut hopes and investor anxiety about the economic outlook.

Home improvement retailer Home Depot forecast a steeper than expected drop in annual profit, raising concerns about the housing market and the health of the American consumer.

In economic releases, data showed the number of Americans claiming jobless benefits reached a two-month high in mid-October for the week concluding 18 October.

New orders for U.S. manufactured goods rebounded in August, though business spending on equipment ?was not as strong as initially thought.

The Dow dipped 1.1 percent and the tech-heavy Nasdaq Composite declined 1.2 percent while the S&P 500 dropped 0.8 percent to extend losses for a fourth straight session, marking its longest slide since August.

European stocks slumped to close around one-month lows on Tuesday as the risk-off mood intensified.

The pan European Stoxx 600 plunged 1.7 percent. The German DAX lost 1.7 percent, France's CAC 40 tumbled 1.9 percent and the U.K.'s FTSE 100 gave up 1.3 percent.