Indian shares are set to see a gap-down opening on Friday, as stocks plunged across Asia on concerns about the turmoil in Europe and the U.S. economy's growth prospects.
The Federal Reserve Bank of Philadelphia´s monthly manufacturing sector survey came in well below expectations and ratings agency Moody's has cut the credit ratings of 16 Spanish banks, citing a weakening economy and the Spanish government's reduced ability to support troubled banks, clouding the outlook for economic recovery.
On Wall Street, stocks posted notable losses overnight, as weaker-than-expected data on regional manufacturing activity and the Conference Board's leading economic indicators index coupled with lingering fears about Greece exiting the euro prompted investors to remain on the sidelines.
Also, trading sentiment weakened after Fitch Ratings said it downgraded Greece's long-term debt ratings further a notch below investment grade to 'CCC' from 'B-' reflecting the heightened risk that Greece may not be able to sustain its membership in the eurozone.
Fitch noted that a Greek exit would likely result in widespread default on private sector as well as sovereign euro-denominated obligations. The Dow and the S&P 500 fell 1.2 percent and 1.5 percent, respectively, to hit four-month closing lows, while the tech-heavy Nasdaq dropped 2.1 percent to end at its lowest level in over three months.
Closer home, benchmark indexes Sensex and the Nifty ended up about 0.25 percent each on Thursday, giving up most early gains, as a further slide in European stocks on fears over Greek banks and a fall in rupee to a new record low against the dollar, reversing initial gains, prompted traders to take some profits off the table.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.