(RTTNews) – Indian shares rose on Thursday as geopolitical and trade tensions related to Greenland eased and risk appetite returned to equity global markets.
Long-held Japanese debt recovered from its losses, helping ease concerns over a bond selloff.
It said, uncertainty over the India-US trade agreement and continued withdrawal of foreign investors from domestic stocks could lead to volatility as the session progresses.
Benchmark indices Sensex and Nifty closed around 0.3 per cent lower on Wednesday, continuing their selloff for the third consecutive session after reports emerged that India and the European Union are close to finalizing a long-awaited free trade agreement.
The rupee fell 72 paise to close at a record low of 91.70 against the dollar.
Foreign investors sold shares worth a net Rs 1,788 crore on Wednesday, while domestic institutional investors bought shares worth a net Rs 1,788 crore. ₹4,520 crore, as per provisional exchange data.
Asian markets traded higher this morning, while Treasuries were steady on strong demand following the auction of $13 billion of 20-year bonds in the US.
The dollar index and oil prices were little changed, while gold was down 0.8 percent at $4,793 an ounce, after hitting new highs in the previous session.
US stocks rose sharply overnight after President Trump canceled proposed tariffs tied to Greenland, saying he has created a framework with NATO for a future agreement regarding Greenland and, indeed, the entire Arctic region.
He did not provide details but said additional discussions were ongoing. Trump told CNBC shortly after that announcement that “we have a concept of an agreement” with Greenland.
The Dow, S&P 500 and tech-heavy Nasdaq Composite all rose about 1.2 percent.
European stocks were little changed on Wednesday as the EU’s legislative body halted work on final approval and implementation of an EU-US trade deal until further notice and US President Trump insisted in his speech at the World Economic Forum in Davos, Switzerland that he would not use force to annex Greenland.
The Pan European Stocks 600 ended flat with a negative bias. The German DAX lost 0.6 percent, while France’s CAC 40 was up marginally and the UK’s FTSE 100 rose 0.1 percent.
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