Nifty may open flat; Asia trades mixed, US markets up

Asian shares glided higher in early trading, although investors are cautiously watching whether renewed selling in crude oil futures will dent sentiment.

The US market too ended higher with the technology sector leading broad gains amid some stabilisation in oil and commodity prices.

In the currency space, the US dollar gained against the euro after greater risk appetite hurt demand and new pressure from short sellers likely weighed on the Euro. The dollar held its advance after stronger economic data saw treasury yields rise.

Among commodities, oil prices dropped, giving back some of the Tuesday rally that helped push up the US stocks toward a gain for 2015. Oil prices earlier had jumped over USD 1 a barrel, as prospects of colder weather in coming weeks inspired buying. However, slowing global demand and abundant supplies from Organization of the Petroleum Exporting Countries (OPEC) members kept energy markets bearish.

In the precious metals space, gold edged up yesterday in response to firmer oil prices, but a rebound in the dollar limited upside momentum for the metal, which appeared poised for a third year of losses amid the prospect of rising US interest rates.