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Sep 07, 2012, 09.22 AM IST
The Indian markets have been volatile over the last many sessions. The Sensex rose 32.93 points to close at 17,346.27 on Thursday. Meanwhile, the Nifty moved up 12.70 points to 5,238.40.
Today, the global cues look positive. The European Central Bank has agreed a new bond-buying programme to lower struggling Euro zone countries' borrowing costs.
A quick look at global and local set-up.
Also read: How Indian market reacts to ECB bond-buying
The US markets surged across the board to finish at multi-year highs, led by a upbeat economic reports and after ECB president Mario Draghi’s speech.
The Dow surged 1.87%, logging its best close since December 2007. The S&P 500 2% posted its highest finish since January 2008. The Nasdaq jumped 2.17% logging its best close in 12 years.
The CBOE VIX tumbled 10% to end below.
US economic data:
Jobless claims declined 12,000 last week to a seasonally adjusted 365,000, hitting its lowest level in a month. ADP report showed that private businesses added 201,000 jobs in August.
The pace of growth in the services sector rose to 53.7 in August, according to ISM's non-manufacturing report.
Key data to watch out for in US:
The crucial jobs report will be released ahead of the Federal Reserve's policy meet next week. Nonfarm payrolls are expected to decline to 125,000. However, the unemployment rate could remain at the elevated 8.3%.
European Central Bank chief Mario Draghi yesterday said the "Euro is irreversible" as he announced an unlimited new bond-buying programme after the central bank decided to keep its benchmark interest rate on hold. The programme called Outright Monetary Transactions (OMT) would focus on the secondary sovereign bond market.
Following Draghi statements European markets closed sharply higher.
In the UK, the Bank of England has once again voted to leave it's interest rates unchanged at their record low of 0.5%.
At 7: 38 am (IST), Asian markets were trading higher. China's Shanghai Composite gained 1.37% or 28.06 points at 2,079.97. Hong Kong's Hang Seng rose 1.61% or 308.50 points at 19,517.80. Japan's Nikkei added 1.58% or 137.53 points at 8,818.10.
Singapore's Straits Times was up 0.59% or 17.64 points at 3,006.90. South Korea's Seoul Composite advanced 1.92% or 36.18 points at 1,917.42. Taiwan's Taiwan Weighted rose 1.28% or 93.67 points at 7,420.39.
The euro traded higher in volatile trading after ECB unveiled a new and potentially unlimited bond-buying programme to stem the Euro zone debt crisis.
Brent crude prices slumped below USD 113 per barrel levels.
Gold prices surged to above USD 1,700 per ounce levels post ECB's bond buying programme. Currently, it is choppy following some better than expected US economic data.
Stocks in news:
A fuel price hike was imminent and sources claim the government may allow oil marketing companies to go ahead with a petrol price hike of Rs 5 per litre. CNBC-TV18 reports quoting oil ministry sources that the development in the pricing front is expected in the next 24 to 48 hours.
NALCO plans to sell 12.15% stake, Department of Divestment invites merchant bankers.
Sources say IMG will hear eight coal block allotees today.
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