Indian shares may follow global peers higher on Friday as investors hope for an early end to the trade war between the world’s two largest economies.
That said, rising oil prices and the fear of more capital outflows as a consequence of the economic slowdown may trigger profit taking at higher levels as the session progresses.
Brent crude remains on track to post its fourth weekly gain and U.S. crude futures are heading for a second weekly rise after a sharp drawdown in U.S. crude inventories and amid optimism the Sino-U.S. trade talks will yield results.
Benchmark indexes Sensex and the Nifty ended Thursday’s lackluster session on a mixed note while the rupee extended gains to end up by 28 paise at 71.84 against the U.S. dollar.
Overnight, U.S. stocks rose to close at their best levels in over a month as China announced the 13th round of high-level talks in its official media and investors cheered data showing U.S. services sector activity accelerated in August and private employers boosted hiring.
The Dow Jones Industrial Average surged 1.4 percent, the tech-heavy Nasdaq Composite index spiked 1.8 percent and the S&P 500 advanced 1.3 percent.
The German DAX gained 0.9 percent and France’s CAC 40 index climbed 1.1 percent while the U.K.’s FTSE 100 dropped 0.6 percent.
European markets rose for a second day running on Thursday to hit fresh one-month highs as fears of a no-deal Brexit ebbed and the U.S. and China agreed to resume trade talks in early October.
The pan European Stoxx 600 gained 0.7 percent. The German DAX climbed 0.9 percent and France’s CAC 40