Sensex, Nifty Seen Opening Up On Firm Global Cues

(RTTNews) - Indian shares are likely to open higher on Monday as global trade tensions eased, and soft U.S. inflation data fueled rate cut hopes.

U.S. Treasury Secretary Scott Bessent said President Trump's threat of 100 percent tariffs on Chinese goods "is effectively off the table" and that he expects the Asian nation to make "substantial" soybean purchases as well as offer a deferral on sweeping rare earth controls.

After two days of talks in Malaysia, a Chinese official said the two sides reached a preliminary consensus on topics including export controls, fentanyl and shipping levies.

Elsewhere, top trade negotiators from the U.S. and Brazil are set to meet today after Trump predicted the nations could "pretty quickly" strike a trade deal.

Closer home, traders are likely to monitor progress in the India-U.S. trade discussions, as both parties move closer to finalizing an agreement.

On Friday, Trade Minister Piyush Goel clarified that India will not accept limits on its trading choices or rush to sign agreements.

There are concerns that that the latest U.S. sanctions on Russian oil companies as well as high crude prices may expand India's fiscal deficit and put pressure on the import bill.

U.S. Secretary of State Marco Rubio has said that while his country is seeking to expand its "strategic relationship" with Pakistan, those ties don't come at the expense of relations with India.

Asian markets were broadly higher this morning and the dollar hit a two-week high against the yen, while gold fell nearly 1 percent below $4,100 an ounce on dollar strength and signs of easing U.S.-China trade tensions.

Oil traded higher after rallying almost 8 percent last week on supply jitters.

U.S. stocks hit record highs on Friday as cooler-than-expected CPI data reinforced views that the Fed will cut the fed fund rate by another 50 bps by year-end.

Data showed the consumer price index rose 0.3 percent month-on-month in September, bringing the annual inflation rate to 3 percent, just below the 0.4 percent and 3.1 percent that economists had expected. Core CPI came in at 0.2 percent and 3 percent on a 12-month basis.

Investor sentiment was also boosted by upbeat earnings news from big-name companies like Ford, Procter & Gamble and Intel.

The Dow rallied 1 percent, the tech-heavy Nasdaq Composite surged 1.2 percent and the S&P 500 added 0.8 percent to notch their second winning week in a row.

European stocks reversed course to close higher on Friday as investors reacted to the delayed U.S. inflation print and a flurry of corporate earnings reports.

The pan European Stoxx 600 gained 0.2 percent. The German DAX inched up by 0.1 percent and the U.K.'s FTSE 100 climbed 0.7 percent while France's CAC 40 finished marginally lower.