Expect positive opening ahead of Fed meet

Indian stock markets were closed on Tuesday for a public holiday, a factor which has saved the investors from a bloodbath ensued in the global markets, led by China that plunged more than 6% yesterday.

U.S. stocks jumped Tuesday amidst a rebound in oil prices; and posting of better-than-forecast earnings from several companies including 3M; Procter & Gamble; Johnson & Johnson; and Coach Inc. The Dow Jones industrial average jumped 282.01 points, or 1.8%, to 16,167.23. The S&P 500 index rose 26.55 points, or 1.4%, to 1,903.63. The Nasdaq composite index added 49.18 points, or 1.1%, to 4,567.67.

Crude Oil rebounds on hopes of OPEC. Non-OPEC producers were inching closer to a deal to reduce output in the face of one of the biggest excess supply in decades. Brent crude jumped almost 6% to USD 32.30 a barrel, reversing earlier falls, while US oil was up 5.4% at USD 31.98.

European stocks have gained after early losses, with oil prices rebounding by almost 5%, on hopes for a deal to tackle the global crude oversupply; and metals prices gaining ground on speculative buying. The Stoxx Europe 600 rose 0.9% to end at 339.20. The U.K’s FTSE 100 finished up 0.6% at 5,911.46. Germany’s DAX 30 gained 0.9% quoting 9,822.75. France’s CAC 40 closed 1.1% higher at 4,356.81.

Asian markets were mostly higher on Wednesday after a rally in U.S. equities following a bounce in oil prices. But Chinese shares remained volatile. Japan's Nikkei 225 index climbed 2.33% after closing down more than 2% on Tuesday, while South Korea’s Kospi index rose 0.74%. Australia’s S&P/ASX 200 Index lost 0.7% as it opened after a holiday. New Zealand’s S&P/NZX 50 Index gained 0.33%. The Shenzhen Composite dropped 1.11%.

While on domestic front, A SGX Nifty 50 index future for January Series traded up 49 points at 7,444. Indian markets may open in the positive following other Asian markets. Investor’s keep an eye on monetary policy meet of the Federal Open Market Committee (FOMC) scheduled at midnight today.