Before Market Opens: From US Fed to SGX Nifty; 9 things to know at 9 am on January 11, 2023

US stocks ended firmly higher on Tuesday, led by a 1 percent gain in the Nasdaq, on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy. In his first public appearance of the year, Powell said at a forum sponsored by the Swedish central bank that the Fed's independence is essential for it to battle inflation. The Dow Jones Industrial Average rose 186.45 points, or 0.56 percent, to 33,704.1; the S&P 500 gained 27.16 points, or 0.70 percent, at 3,919.25; and the Nasdaq Composite added 106.98 points, or 1.01 percent, at 10,742.63.

Asian equities edged higher on Wednesday, while the dollar steadied as investors braced for U.S. inflation data that will influence the Federal Reserve's interest rate policy. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.28% higher, while Japan's Nikkei gained 1%. Australia's S&P/ASX 200 index rose 0.80%. China's stocks opened 0.1% higher while Hong Kong's Hang Seng index gained 0.6% at the start of the day.

At 8:20 am, the SGX Nifty was trading 28 points or 0.12 percent higher at 18,014, indicating a flat opening for the Indian markets. 

Domestic equities witnessed a sharp selloff on January 10, mirroring weak global sentiment, as investors booked profits across sectors ahead of comments from Federal Reserve Chairman Jerome Powell later today. The market mood was dealt a blow after Fed officials hinted it was early to say whether the pace of rate hikes will ease or not. Sensex closed 632 points, or 1.04 percent, lower at 60,115.48. Nifty50 fell 187 points, or 1.03 percent, to 17,914.15.

Oil prices edged slightly higher on Tuesday as the US government forecast record global petroleum consumption next year and as the dollar hovered at seven-month lows. Global consumption of liquid fuels is forecast to reach 102.2 million barrels per day in 2024, driven primarily by growth in countries like India and China, reflecting trends in economic activity, the US Energy Information Administration said in its Short-Term Energy Outlook. Brent futures rose 45 cents or 0.6 percent, to settle at $80.10 a barrel, while US crude ended 49 cents, or 0.6 percent higher at $75.12 per barrel

The World Bank slashed its growth forecasts for most countries and regions and warned that new adverse shocks could tip the global economy into a recession. Global gross domestic product will probably increase 1.7 percent this year, about half the pace forecast in June, the Washington-based lender said Tuesday. That would be the third-worst performance in the last three decades or so, after the contractions of 2009 and 2020. The bank, which also cut its growth estimates for 2024, said persistent inflation and higher interest rates are among the key reasons. It also cited the impact of Russia’s invasion of Ukraine and a decline in investment. 

The rupee jumped 57 paise to close at 81.79 per dollar in the previous session as the greenback traded near its seven-month low level ahead of US December inflation data expected on January 12.

Foreign institutional investors (FII) net-sold shares worth ₹2,109.34 crore, while domestic institutional investors (DII) net-bought shares worth ₹1,806.62 crore on January 10, as per provisional data available on the NSE.

Gold prices held firm near an eight-month peak on Tuesday, buoyed by a weaker dollar and hopes of slower U.S. rate hikes after the Federal Reserve Chair Jerome Powell failed to provide more clarity on tightening path. Spot gold rose 0.3% to $1,876.39 per ounce by 10:42 a.m. ET (1542 GMT), after hitting its highest since May 9 on Monday. U.S. gold futures rose 0.2% to $1,881.90.