Sensex, Nifty Seen Higher At Open As Dollar Struggles

(RTTNews) - Indian shares look set to open on a positive note Friday despite persisting concerns over tariffs and inflation.

U.S. President Donald Trump has hinted at a "very big" trade agreement with India, with Commerce Minister Piyush Goyal and U.S. Commerce Secretary Howard Lutnick confirming that both nations are negotiating a fair, balanced framework that could benefit businesses and consumers.

Benchmark indexes Sensex and Nifty both jumped around 1.2 percent each on Thursday to extend gains for a third straight session.

The rupee hit a two-week high before closing 39 paise stronger at 85.70 against the greenback amid easing geopolitical tensions and speculation that U.S. interest-rate cuts may come sooner than expected.

Asian markets were broadly higher this morning as U.S. Commerce Secretary Howard Lutnick said the U.S. and China have finalized the understandings reached between Beijing and Washington during negotiations in Geneva and London.

The agreement specifically includes China resuming shipments of rare earth metals to the U.S. while the U.S. is prepared to lift previously imposed restrictions on exports to China, including ethane, microchip software, and jet engine components.

The trade deal may be signed during the next round of talks in London in early July, pending approval from President Trump and Chinese President Xi Jinping.

Gold ticked lower in Asian trade and headed for a weekly loss as a ceasefire between Israel and Iran dented demand for havens.

The dollar hovered near its lowest level in 3-1/2 years against the euro and sterling. Oil traded higher but was on course for its worst week since March 2023 on easing concerns over Middle East supply risks.

U.S. stocks rose overnight as White House spokesperson Karoline Leavitt downplayed the importance of July's tariff deal deadlines.

In economic news, sales of durable goods came in well above expectations in May. Jobless claims came in below expectations last week, but continuing claims hit a 2.5-year high.

Revised data showed, real U.S. GDP fell at an annual rate of 0.5 percent in the first quarter of 2025, a downgrade from the previous estimate of a 0.2 percent decline and marking its worst quarterly performance since early 2023.

The tech-heavy Nasdaq Composite rallied 1 percent and the S&P 500 climbed 0.8 percent to end the day just shy of their record closing highs on Fed rate cut hopes. The narrower Dow advanced 0.9 percent.

European stocks closed mostly higher on Thursday after NATO leaders backed the increase in defense spending demanded by U.S. President Trump.

The pan European STOXX 600 ended flat with a positive bias. The German DAX rose 0.6 percent and the U.K.'s FTSE 100 edged up by 0.2 percent while France's CAC 40 finished marginally lower.