Sensex, Nifty To Open On Cautious Note As US Bank Worries Mount

(RTTNews) - Indian shares may open a tad lower on Friday, tracking weak cues from the U.S. and European markets.

Unabated FII inflows on the back of falling oil prices and a weakening dollar in overseas markets may offer some support at lower levels.

Benchmark indexes Sensex and Nifty jumped around 0.9 percent each on Thursday while the rupee inched up by 2 paise to close at 81.78 against the dollar.

Asian markets traded mixed this morning amid investor optimism about a likely Fed rate hike pause in June.

China's service activity grew for a fourth straight month in April, a private-sector survey showed earlier today, easing concerns about the strength of economic recovery from the pandemic.

The dollar rose against the euro while the Japanese yen headed for a weekly gain of over 1.5 percent, snapping three straight weeks of losses.

Gold held steady and headed for its biggest weekly gain since mid-March while oil edged up slightly after recent string of losses.

Saudi Arabia has cut the official selling price for its Arab Light crude oil to Asia after futures slumped on concerns about the health of the global economy.

U.S. stocks fell for a fourth day running overnight on bank contagion worries after PacWest confirmed that it is reviewing strategic options, including a potential sale. Mixed signals from the Fed on rate hike path also weighed on markets.

On the economic front, weekly jobless claims rose along with labor costs while the trade deficit narrowed in March.

The Dow gave up 0.9 percent to turn slightly negative for 2023 while the S&P 500 declined 0.7 percent and the tech-heavy Nasdaq Composite eased half a percent.

European stocks closed lower on Thursday after the European Central Bank slowed the pace of its interest-rate increases but not hinted at a pause.

The pan European STOXX 600 dropped half a percent. The German DAX dipped half a percent, France's CAC 40 shed 0.9 percent and the U.K.'s FTSE tumbled 1.1 percent.