US markets ended on a weak note on Friday despite a positive jobs report. The US ten year bond yields soared to 1.95 percent and the dollar index shot past the 94 mark.
The Indian equity market is likely to open in red with the SGX Nifty, an indicator of pre-market opening trading in red down around 84 points at around 7.30 hrs on Monday. The 30-share BSE Sensex had fallen 133 points on Friday continuing weakness for the sixth consecutive session.
US markets too ended on a weak note on Friday despite a positive jobs report. The US ten year bond yields soared to 1.95 percent and the dollar index shot past the 94 mark.
Stocks closed down on Friday amid continued concerns over Greece and a strong jobs report that renewed the possibility of an earlier fed rate hike. The CBoE volatility index edged higher to trade near 18.
On the European front, the Greek government is under pressure to find a solution to its funding situation as its current bailout ends at the end of February and there is still a tranche of bailout funds it has not received
Lenders are not ready to release the funds until Greece makes a commitment to continue with the conditions of its bailout. Meanwhile the S&P downgraded its rating on Greece to “b-” from “b.”
Asia too was mixed in morning trade as weak trade data from china weighs on sentiment.
Nikkei was trading with mild gains as the yen moved to four-week lows of 118.9 against the dollar
Chinese trade data released on Sunday showed exports fell 3.3 percent from year-ago levels while imports tumbled 19.9 percent below expectations.
From the currency space, the dollar gained after robust US jobs data helped rekindle views that the Federal Reserve would hike interest rates as early as June.
From the commodities space, oil rallied as falling oil rig counts and violence in producer Libya helped to stall a sell-off. Brent crude was trading around USD 58 dollars per barrel.
And from precious metals space, gold gained for the first time in three sessions, boosted by safe-haven bids as Asian equity markets fell on disappointing Chinese trade data.
Back home the stocks to watch out for are DLF, Larsen and Toubro, Bank of India, Jaypee Infratech, Jaiprakash Power Ventures, JK Tyre & Ind all which will be reporting their quarterly earnings today.