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U.S. stocks closed mostly lower on Wednesday, with the Nasdaq Composite experiencing its third consecutive loss. Investors were analyzing data on private-sector employment and the services sector while waiting for the release of the March jobs report on Good Friday, a market holiday.
The report is expected to show 238,000 nonfarm payroll jobs were added to the U.S. economy last month, while the unemployment rate is set to hold steady at 3.6%.
ADP reported that private-sector employers added 145,000 jobs in March, well below the 210,000 expected by economists surveyed by The Wall Street Journal.
The Institute for Supply Management’s service sector activity index, a bellwether of business conditions at U.S. companies, fell to a three-month low of 51.2% in March and signaled slackening growth as strains mount on the economy.
Financial markets are pricing in a 62% likelihood that the central bank will let its key interest rate stand at its still-restrictive 4.75%-5.00% range at the conclusion of its next policy meeting in May, according to CME’s FedWatch tool.
RBI is expected to raise its benchmark rate on Thursday for the seventh consecutive meeting and leave the door open for more increases to bring inflation back within its target range.
Asian stocks fell after US equities dropped and government bonds rallied against the backdrop of weaker-than-expected economic data that supported forecasts for a recession.
However, the Nifty rose for the fourth consecutive session on April 05 ahead of the outcome of the RBI MPC meet on April 06. At close, Nifty was up 0.91% or 159 points at 17557.1. On falls, the 17428-17451 band could provide support, and once the Nifty rises above 17574, it could open up further rise towards 17800.