Opening Bell - Morning Commentary
Oil Prices Rise on Geopolitical Tensions, Dollar Begins 2026 on Weak Footing
Most of the global stock markets remained closed yesterday in observance of New Year's Day.
The UK's FTSE 100 index paused near record levels in the final stretch of 2025 on Thursday, wrapping up its strongest annual gain in 16 years in a shortened trading session.
The U.S. dollar made a feeble start to 2026 on Friday after struggling against most currencies last year, while the yen steadied near 10-month lows as traders awaited economic data this month to gauge the path of interest rates.
A narrowing interest rate differential between the U.S. and other economies has cast a shadow over the foreign exchange market, resulting in most major currencies appreciating sharply against the dollar in 2025, with the yen an exception.
Oil prices edged up on the first day of trade in 2026 after last year posting their biggest annual loss since 2020, as Ukrainian drones targeted Russian oil facilities and a U.S. blockade pressured Venezuela's exports.
Brent crude futures climbed 14 cents on Friday to $60.99 a barrel, while U.S. West Texas Intermediate crude was at $57.56 a barrel, up 14 cents.
South Korea's factory activity expanded in December, after two months of contraction, on a rebound in export demand, a private-sector survey showed on Friday, with manufacturers' optimism surging to a 3.5-year high.
Nifty extended its winning streak for the second straight session yesterday, adding 16 points to close at 26,146. The index opened 44 points higher but remained range-bound through most of the session, consolidating within a narrow band.
A sustained move above 26,234 could signal a breakout from the current consolidation phase and open the door for a retest of all-time highs and potentially higher levels. On the downside, the 25,900 zone is expected to act as immediate short-term support for the index.
Indian markets are poised to open moderately higher on strong global cues.