Indian markets are closed today due to the Lok Sabha elections taking place in Mumbai.
Market analysts predict continued volatility in the short term, primarily driven by Foreign Institutional Investor (FII) selling amidst ongoing uncertainty about election outcomes. FIIs have offloaded shares worth a net Rs 10,650 crore in the cash segment during the week ending May 18, raising the total net sales for the current month to Rs 33,625 crore.
In terms of economic reports, the HSBC Manufacturing and Services PMI Flash numbers for May are scheduled for release on May 23. Additionally, data on foreign exchange reserves for the week ending May 17 will be available on May 24.
Asian markets saw higher trading this morning as China introduced new measures to bolster its struggling property market.
The dollar index remained relatively stable as investors await the release of the Federal Open Market Committee (FOMC) minutes, a speech by Federal Reserve Chair Jerome Powell, and PMI data for May for more insights on the future rate outlook.
Gold prices increased, trading above $2,400 per ounce, while oil prices saw modest gains amid uncertainty about Iranian President Ebrahim Raisi's condition following a helicopter crash.
In the United States, stock markets experienced fluctuations but generally ended higher on Friday, marking the fourth consecutive week of gains driven by optimism about a potential rate cut by the Federal Reserve in September. The Dow Jones Industrial Average inched up 0.3 percent, closing above 40,000 for the first time. The S&P 500 rose by 0.1 percent, whereas the tech-focused Nasdaq Composite saw a marginal decline.
European markets closed slightly lower on Friday, breaking a nine-day winning streak. This was attributed to hawkish comments from the Federal Reserve, some disappointing corporate earnings, and mixed economic data from China.
The pan-European STOXX 600 fell by 0.1 percent. Both Germany's DAX and the U.K.'s FTSE 100 decreased by about 0.2 percent, while France's CAC 40 declined by 0.3 percent.