FX.co ★ Sensex, Nifty Set For Muted Open As US Yields Climb On Inflation, Rate Concerns

Indian stocks are expected to begin trading subtly on Friday amidst concerns over slowing GDP growth and unyielding inflationary forces in the U.S.

Technology shares may draw attention with the U.S. 10-year bond yield shooting up to a new five-month peak at 4.73%.

However, the impressive first quarter earnings from Google's parent company, Alphabet, declared after the U.S. closing bell, could act as a buffer against substantial dips in the broader market.

Moreover, Microsoft reported quarterly results that surpassed Wall Street's expectations. Leading indices, Sensex and Nifty, both increased by around 0.7% on Thursday, marking the fifth consecutive session of gains, ahead of the Nifty F&O monthly expiry. The rupee appreciated by 5 paise, closing at 83.28 against the dollar.

Asian markets had a mixed performance in the morning, in anticipation of an impending policy decision by the Bank of Japan and the announcement of the Federal Reserve's preferred inflation measurement.

Gold prices experienced a slight increase but were poised for a weekly drop. Meanwhile, oil prices climbed after U.S. Treasury Secretary Janet Yellen suggested to Reuters that the U.S. GDP growth for the first quarter might be upgraded, anticipating that inflation will taper to more regular levels.

U.S. stocks dipped slightly, but were better off than the day's lowest points overnight, following unsatisfactory earnings updates from IBM and Meta Platforms.

Treasury yields soared as fresh data exhibited stalling GDP growth but strong inflation, triggering fears of stagnant inflation, or stagflation.

The data revealed that U.S. GDP decelerated to 1.6% annually in the first quarter, falling from a surge of 3.4% in the final quarter of 2023.

Core inflation in Q1 was at 3.7%, a rise from a 2% annual rate, causing speculations of rate cuts to be deferred until December.

The Dow lost 1%, the Nasdaq Composite, heavy with technology stocks, decreased by 0.6%, and the S&P 500 fell by half a percent.

European stocks largely closed in the red on Thursday, with mixed earnings and lacklustre U.S. data countering notable M&A developments in the mining sector.

The pan-European STOXX 600 dropped by 0.6%. Germany's DAX fell by 1%, and France's CAC 40 lost 0.9% as well. On the other hand, the U.K.'s FTSE 100 showed a gain of half a percent.