FX.co ★ Sensex, Nifty Likely To Follow Asian Peers Lower

Indian markets are poised for a weak opening on Monday following news that China's $1.4 trillion debt swap plan failed to meet expectations, coupled with disappointing inflation data over the weekend, sparking renewed concerns about the economic recovery in the world's second-largest economy.

Simultaneously, in the United States, President-elect Donald Trump achieved a clean sweep in the seven battleground states, boosting Republican prospects of securing the House. Attention is now concentrated on the speed at which Trump will enact his proposed fiscal and protectionist trade policies, including potential tariffs on China.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, commented over the weekend that retaliatory tariffs from global trading partners could adversely affect long-term inflation.

Throughout the week, investors will be watching key factors such as Q2 earnings reports, domestic inflation numbers, industrial output data, ongoing Middle East tensions, oil price fluctuations, and foreign institutional investment flows, all of which are anticipated to shape market sentiment.

This morning, Asian markets were predominantly in the red, with Hong Kong experiencing the steepest declines. The U.S. dollar appreciated against major currencies, continuing last week's upward trend due to worries that Trump's fiscal strategies might fuel inflation.

Gold prices in Asian markets declined as the U.S. dollar strengthened, while oil prices further decreased after a nearly 3 percent drop on Friday.

U.S. equities reached new heights with record closing highs on Friday, marking significant weekly gains fueled by optimistic forecasts for GDP growth, deregulation, and tax reductions under the Trump administration.

In recent economic news, U.S. consumer sentiment reached a seven-month peak in early November, while one-year inflation expectations relaxed, and long-term expectations saw a slight increase, according to various data insights.

The Dow Jones rose 0.6 percent, the S&P 500 added 0.4 percent, concluding their best week in a year, while the Nasdaq Composite posted a slight increase.

On the other hand, European stocks closed lower on Friday as market participants grappled with political instability in Germany and considered the implications of Trump's proposed protectionist measures. The pan-European STOXX 600 index declined by 0.7 percent. France's CAC 40 dropped 1.2 percent, and both Germany's DAX and the U.K.'s FTSE 100 fell approximately 0.8 percent.