(RTTNews) – Indian shares rose on Thursday as oil prices halted a sharp rise and solid readings on the US labor market and services growth showed the world’s largest economy remains remarkably resilient.
US Treasury Secretary Scott Besant said tariff concerns could limit potential gains, as the global import tariff rate could soon rise to 15 percent from the current 10 percent.
“It is my firm belief that tariff rates will return to their old rate within five months,” Besant said during a CNBC interview.
Benchmark indices Sensex and Nifty fell around 1.5 per cent each on Wednesday as rising uncertainty in global trade and energy markets led to jittery investors.
The rupee fell 67 paise to close at a record low of 92.16 against the US dollar amid risk-on sentiment across the world in the wake of the US-Iran crisis.
Foreign institutional investors sold Indian shares worth about Rs 11,000 crore in the two trading sessions, according to provisional data.
Asian markets were trading higher this morning after several days of decline. South Korea’s Kospi jumped more than 10 percent, Japan’s Nikkei index rose nearly 3 percent and Hong Kong’s Hang Seng rose more than 1 percent, while gains elsewhere across the region were modest.
The dollar fell the most in nearly three weeks, helping gold prices climb to $5,200 an ounce.
Federal Reserve Governor Stephen Miron said on Wednesday he believes it is appropriate to continue cutting interest rates despite the Iran war.
Brent crude futures were marginally higher in early Asian trade today after little change overnight in the New York trading session. However, WTI crude futures were up more than 2 percent.
US stocks rose overnight as oil prices steadied recently following news that the US would discuss offering insurance and military escort of ships to help ease the flow of oil through the Strait of Hormuz.
Defense Secretary Pete Hegseth said the war could last up to eight weeks, but could end sooner, hinting at a potentially longer time frame for the conflict than previously stated by the Trump administration.
“Finally, we set the tempo and pace. The enemy is off balance, and we will keep them off balance.”
Investors also were encouraged by upbeat economic data, with private employers adding more jobs than expected in February and U.S. services sector activity hitting a 3-1/2-year high in the month.
The tech-heavy Nasdaq Composite rose 1.3 percent, the S&P 500 rose 0.8 percent and the Dow gained half a percent.
European stocks also closed higher on Wednesday after two consecutive days of sharp decline amid inflation concerns stemming from the US-Iran war.
The Pan European Stoxx 600 advanced 1.4 percent. The German DAX rose 1.7 percent, while France’s CAC 40 and the UK’s FTSE 100 both rose 0.8 percent.
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