Sensex, Nifty Seen Higher On Dovish Fed Comments

(RTTNews) - Indian shares are seen opening higher on Monday as traders react to Fed Chair Jerome Powell's dovish comments at the conference in Jackson Hole.

That said, volatility cannot be ruled out as the deadline for implementation of additional 25 percent U.S. tariff on Indian goods approaches.

The additional 25 percent tariffs due to the country's increased purchases of Russian oil is set to be implemented effective August 27.

There seems to be no hopes for tariff relief as the U.S. officials have already cancelled the scheduled visit to India during August 25-29. India has already been paying 25 percent tariffs since August 1.

Peace negotiations supposed to take place between Russia and Ukraine appeared to be stalled now and U.S. President Donald Trump has said that he will make a "very important decision" in the next two weeks regarding the ongoing Russia-Ukraine war if both sides do not agree to a peace deal.

In another significant development, Trump has chosen Sergio Gor, head of the White House Presidential Personnel Office, as his pick for the new ambassador to India.

Gor, once dubbed 'snake' by Elon Musk, has also been appointed Special Envoy for South and Central Asian Affairs.

"For the most populous Region in the World, it is important that I have someone I can fully trust to deliver on my Agenda and help us, MAKE AMERICA GREAT AGAIN," Mr. Trump wrote.

Asian markets were broadly higher this morning. Yields on 10-year U.S. notes held steady after falling on Friday. The dollar index was marginally higher while gold edged down slightly after rising 1 percent to reach a two-week high last week.

Oil edged up after Ukraine stepped up attacks on Russia, fanning concerns Russian oil supply could be disrupted.

U.S. stocks surged on Friday after Federal Reserve Chair Jerome Powell said that economic risks are 'shifting' and a rate cut may be warranted.

He added that "risks to inflation are tilted to the upside, and risks to employment to the downside — a challenging situation".

The Dow jumped 1.9 percent to reach a new record closing high while the S&P 500 rallied 1.5 percent to snap a five-day losing streak and the tech-heavy Nasdaq Composite climbed 1.9 percent.

European stocks rose on Friday as Powell pointed to a possible September interest rate cut in his Jackson Hole Symposium speech.

The pan-European STOXX 600 index closed 0.4 percent higher, logging its third week of gains.

The German DAX rose 0.3 percent, France's CAC 40 added 0.4 percent and the U.K.'s FTSE 100 inched up 0.1 percent.