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Last Updated : Dec 03, 2015 08:35 AM IST | Source: Moneycontrol.com

Nifty likely to open in red on weak global signals

US market ended lower, with selling accelerating in late afternoon trade after oil prices broke below USD 40 a barrel. Asia too started the day on a weak note.

The Nifty is likely to open in red with the SGX Nifty trading at 7923.00, down 33.00 points at 7:46. The market is likely to be pulled lower by weak global cues.

The Sensex ended down 51.56 points or 0.2 percent at 26117.85 and the Nifty slipped 23.55 points or 0.3 percent at 7931.35. 

US market ended lower, with selling accelerating in late afternoon trade after oil prices broke below USD 40 a barrel. Federal Reserve's Chairperson, Janet Yellen has expressed confidence in the US economy and said that she was looking forward to the day when the rate structure in the US will reflect the recovery in the economy.

Meanwhile, European equities closed the session on a mixed note yesterday as investors digested weak inflation numbers and contemplated the possibility of further stimulus being announced by the European Central Bank (ECB) today. 

Asia too started the day on a weak note. The Nikkei 225 was nearly flat, down 13 points at 19,926, in early trade, as investors remained cautious over Japan's fragile economy. Australian shares fell 0.5 percent.

In the currency space, the US dollar climbed to its highest against the euro in more than seven months after Fed’s Yellen once again flagged an interest rate hike that may come in coming two weeks. The greenback also touched its strongest level against the yen since around mid-November, on pace for its biggest one-day gain in three weeks.

In commodities, oil prices fell 4.6 percent on Wednesday after US government data showed a 10th straight week in crude builds, but traders cautioned of volatility ahead of this week's Organization of the Petroleum Exporting Countries (OPEC) meeting from suggestions of any production cuts.

Crude also hit session lows, breaking below USD 40 a barrel, after the release of the fed's beige book.

Gold fell to its lowest in nearly six years on wednesday, extending losses as Fed's Yellen said she was "looking forward" to an interest rate hike that will mark the US economy's recovery from recession.

Stay tuned for more...
First Published on Dec 3, 2015 07:53 am