Negative opening likely amid weak global cues

Indian markets are likely to open in the red taking weak cues from the global markets as the US indices turned into red figures for the year. The SGX Nifty Index Future was lower by 15 points, indicating Nifty opening around the level of 10,654.  
  
Majority of Asian markets are in the red on Wednesday following carnage on the Wall Street overnight. The Japanese stock market Nikkei 225 has slipped 0.61 per cent and Hong Kong’s Hang Seng has lost 0.52 per cent; while China’s Shanghai Composite Index was almost unchanged.  
  
Back home, key benchmark indices had a soft start owing to terrible global cues. For the initial part of the trading session, indices moved in a lacklustre manner; however, as the day progressed, selling pressure intensified and, as a result, indices snapped their three-day winning streak with the BSE Sensex and the Nifty breaching their crucial psychological levels of 35,500 and 10,700, respectively.   
  
The US stocks extended the recent sell-off and turned negative for the year amid a negative response to the most recent batch of earnings, some discouraging economic reports and crude oil resuming its slide, which weighed on the energy stocks. On the economic front, a report from the Commerce Department showed housing had started to pick up in the month October, although the report also showed a decrease in building permits, which is one of the leading indicators tracked by conference board as it is a gauge of future construction. The Dow Jones Industrial Average plunged 2.21 per cent; the S&P 500 fell 1.8 per cent and the Nasdaq tumbled 1.7 per cent.  
  
The European indices continued to be battered on Tuesday as market participants continued to monitor the latest Brexit development. The DAX of Germany slumped 1.58 per cent, the CAC of France lost 1.22 per cent and UK’s FTSE 100 finished lower by 0.76 per cent.