Sensex, Nifty Seen Opening Higher As Middle East Tensions Ease

(RTTNews) - Indian shares are seen opening higher on Monday despite mixed cues from global markets. Investors are likely to keep a close eye on the latest geopolitical developments after Israel said it would pull some troops out from Gaza.

Iran continued to prepare a response to a suspected Israeli attack on its consulate in Syria, while Hezbollah warned that it's ready for war.

The focus will shift to Q4 earnings this week, with IT services giant Tata Consultancy Services (TCS) set to kick off the earnings season for the March quarter of FY24 on Friday, aftermarket trading hours.

On the data front, reports on retail inflation for March and industrial output for February are scheduled to be released this week.

Globally, the ECB policy meeting, speeches by Fed officials, the release of minutes of Fed's March FOMC meeting, U.S. March inflation data and earnings results from U.S. banks JPMorgan Chase & Co. and Citigroup may sway markets this week.

Asian stocks traded mixed this morning, with mainland Chinese markets slipping into the red as trading resumed after a two-day holiday.

Treasuries tickled lower and the dollar traded firm after strong U.S. jobs data highlighted doubts on when the Fed would deliver its first interest-rate cut this year.

Gold was marginally lower after surging to record highs last week. Oil prices fell nearly 2 percent in Asian trading as Israel withdrew more soldiers from southern Gaza and committed to fresh talks on a potential ceasefire in the six-month conflict.

U.S. stocks rose sharply on Friday as data showed the world's largest economy added more jobs than expected in March and the jobless rate edged down to 3.8 percent from 3.9 percent in February.

Non-farm payroll employment spiked by 303,000 jobs in March after surging by a downwardly revised 270,000 jobs in February.

The report showed muted wage inflation, raising optimism the upcoming CPI report might not surprise to the upside.

The tech-heavy Nasdaq Composite surged 1.2 percent, the S&P 500 added 1.1 percent and the Dow gained 0.8 percent.

European stocks fell on Friday amid persisting tensions in the Middle East and continued uncertainty about the Fed's rate trajectory.

The pan European STOXX 600 declined 0.8 percent. The German DAX lost 1.2 percent, France's CAC 40 shed 1.1 percent and the U.K.'s FTSE 100 gave up 0.8 percent.