Domestic stocks are poised for weak opening on worsening coronavirus pandemic and soured US-China relations. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 55 points at the opening bell.
Overseas, Asian stocks are trading lower on Friday, led by Chinese stocks, as investor sentiment takes a hit over worsening U.S.-China tensions and a sell-off in U.S. markets overnight. Markets in Japan are closed for a holiday on Friday.
After the U.S. government ordered the closure of the Chinese consulate in Houston, Secretary of State Mike Pompeo slammed China in a speech on Thursday. He said Washington will no longer tolerate Beijing's attempts to usurp global order.
In US, stocks dropped on Thursday as Microsoft and Apple led the broader market lower and traders pored through disappointing unemployment data.
Microsoft shares dropped 4.4% despite reporting better-than-expected earnings. Apple slid 4.6% and Amazon dropped 3.7%. Facebook ended the day lower by 3% along with Google-parent Alphabet.
The latest unemployment figures also dented market sentiment. Initial claims for state unemployment benefits increased to a seasonally adjusted 1.416 million for the week ended July 18, from 1.307 million in the prior week, the Labor Department said on Thursday.
Meanwhile, Republicans were reportedly considering extending a $600-per-week unemployment benefit at a reduced rate of $100 per week. On Thursday, Treasury Secretary Steven Mnuchin said an extension in unemployment benefits will be based on approximately 70% wage replacement.
Back home, domestic equity benchmarks ended near the day's high on Thursday, supported by firmness in banks stocks and index heavyweight Reliance Industries. The barometer index, the S&P BSE Sensex, rose 268.95 points or 0.71% at 38,140.47. The Nifty 50 index climbed 82.85 points or 0.74% at 11,215.45.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,740.50 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 931.91 crore in the Indian equity market on 23 July, provisional data showed.
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