Global equity markets are posting gains even as crude resumed its decline. Oil fell nearly a percent as data showed U.S. stockpiles at their highest seasonal level in thirty years. Oil supplies climbed by 4.46 million barrels last week, according to the American Petroleum Institute.
Asian shares rose in early trade, tracking overnight gains on Wall Street. The S&P 500 Index closed near its record high after new home sales rose and manufacturing slowed. The mixed economic data raised hopes that the U.S. Federal Reserve wouldn’t raise rates in a hurry.
Fed Chief Janet Yellen is scheduled to speak at the annual Jackson Hole symposium on August 26, even as Vice Chairman Stanley Fischer and other Fed officials have stated that interest rates may rise in 2016. There’s a 26 percent chance of a rate hike in September, and a 54 percent chance of a move in December, according to data compiled by Bloomberg based on fed fund futures.
The dollar strengthened against most of its peers for the third straight session, while gold futures posted the first gain in three days. U.S treasuries are stuck in their tightest monthly trading range in a decade.
The SGX Nifty is trading 0.2 percent lower around the 8,630 mark, indicating a weak start for Indian equities.
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