10 things to know before opening bell on May 18

SUMMARY

The Indian stock market is likely to make a muted start on Wednesday amid a mixed trend in global markets. While US stocks ended the overnight session in green, Asian shares were in the negative territory in morning trade following Fed’s indication it will keep hiking rates until it controls inflation. From stocks across markets, oil, rupee to gold, here are 10 things to know before opening bell on May 18

By CNBCTV18.comMay 18, 2022 8:10:48 AM IST (Published)

Wall Street | The Dow Jones Industrial Average index jumped 1.3 percent, S&P 500 surged over 2 percent while the tech heavy Nasdaq index ended the overnight session 2.7 percent higher.

Asian equities | A mixed trend was seen in the Asian markets in Wednesday morning trade. Japan's Nikkei was up 0.4 percent while the Shanghai index declined 0.1 percent and Hong Kong's Hang Seng index slipped 0.5 percent by 7:46 am.

SGX Nifty | Trends on SGX Nifty hinted at a start in the red for Indian markets. SGX Nifty, which is an indicator of how India's broader Nifty index would perform, was down 0.2 percent and so were Nifty futures at 7:45 am.

Dalal Street | Sensex and Nifty on Tuesday spurted by over 2.5 percent to log their best single-day gains in three months. BSE Sensex zoomed 1,344.63 points to settle at over one-week high of 54,318.47 points and Nifty50 rallied 417 points to finish at 16,259.30 points.

Rupee | The rupee on Tuesday hit its lifetime intra-day low of 77.79 before closing 11 paise higher against the US currency. A strong rally in the domestic equities helped the rupee rebound and close at 77.44.

Oil | Oil prices rose more than $1 a barrel in early Asian trade on hopes of demand recovery in China as the country gradually eases some of its strict COVID-19 containment measures. Brent crude futures were up $1.15, or 1.0 percent, at $113.08 a barrel at 6:12 am.

Gold | Gold edged lower on Wednesday as robust US retail sales data and expectations of aggressive interest rate increases outweighed support from a pullback in the dollar. Spot gold fell 0.4 percent to $1,810 per ounce at 7:42 am.

Cryptocurrency | Crypto market was trading higher this morning. The world's largest crypto Bitcoin was up 1.3 percent at $30,103.44 while Ethereum was at $2,065.88, up 2.4 percent in last 24 hours as of 7:39 am.

Fed | Chair Jerome Powell on Tuesday underscored the Federal Reserve's determination to keep raising interest rates until it has brought inflation under control a high-stakes effort that carries the risk of causing an eventual recession. The Fed's increases in its benchmark short-term rate typically lead, in turn, to higher borrowing costs for consumers and businesses, including for mortgages, auto loans and credit cards. The economy usually slows as a result.

Russia-Ukraine war | Peace negotiations between Russia and Ukraine have stagnated, officials said on Tuesday, with both sides trading blame and Moscow indicating a return to talks may be difficult. Russia accused Ukraine of hardening its stance and the West for bolstering the government in Kyiv, with Foreign Minister Sergei Lavrov saying that Washington, London and Brussels want to use Ukraine to their strategic advantage.