The Federal Open Market Committee is widely expected to keep interest rates unchanged, in the 5%-5.25% range.

The European Central Bank and the Bank of Japan will deliver their rate decisions on Thursday and Friday, respectively.

On the domestic front, favourable macroeconomic data is likely to fuel optimism in the market. The retail Inflation hit a 25-month low in May, driven by easing food prices. Inflation based on the Consumer Price Index (CPI) cooled to 4.25% in May from 4.70% in the previous month, as per the official data.

Read here: Inflation cools to 25-mth low in May as food prices ease

Moreover, India’s industrial output grew significantly in April as the Index of Industrial Production (IIP) Rose by 4.2%, according to the data released by the Ministry of Statistics and Programme Implementation.

“Market would react to India’s inflation and IIP numbers. US Inflation would be released just ahead of the US Fed meeting on Wednesday. Investors are keenly awaiting central banks’ viz US Fed, ECB and BoJ interest rate decisions this week where they are expected to take a pause,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Asian Markets 

Japan’s Nikkei 225 was trading 0.78% Higher to hit a new 2023-high, while the Topix gained 0.61%.

South Korea’s Kospi rose 0.43% and the Kosdaq rose 0.48%. Hong Kong’s Hang Seng index futures fell by over 40 points at 19,358.

In Australia, the S&P/ASX 200 index eased 0.1% to 7,115.0.

SGX Nifty was trading 25.5 points, or 0.14%, higher at 18.724, indicating a positive start for the Indian benchmark indices.

US Market

All three major indices on Wall Street ended higher overnight ahead of the inflation data and US Fed meet.

The S&P 500 closed 40.33 points, or 0.94%, higher at 4,339.19, while the Nasdaq Composite ended 202.78 points, or 1.53%, higher at 13,461.92. The Dow Jones Industrial Average rose 190.47 points, or 0.56%, to settle at 34,067.25.

Europe

European markets gained, led by German shares after Adidas stock jumped. The pan-European STOXX 600 index closed 0.2% higher.

Britain’s FTSE 100 added 0.1% at 7,570.69, while Germany’s DAX rose 0.9% to 16,097.87. France’s CAC 40 gained 0.5% at 7,250.35.

Energy

Crude oil price rose, but were trading near the lowest level in almost three months amid persistent concerns over the demand outlook in China and the US.

Brent crude futures rose 0.26% to $72.03 a barrel, while US West Texas Intermediate (WTI) crude gained 0.16% to $67.23 a barrel.

Bullion

Gold prices edged higher after the dollar pulled back. Investors awaited the US inflation data and the Federal Reserve’s decision on interest rates.

Spot gold rose 0.1% to $1,959.23 per ounce, while US gold futures traded 0.2% higher at $1,973.40.

(With inputs from Reuters)

Updated: 13 Jun 2023, 07:02 AM IST