Markets may see flat-to-negative opening

Indian equities are likely to open flat on Thursday, May 27, 2010. SGX Nifty is trading at 4,890 (7.38 am), 19 points lower than Wednesday closing of 4,909.

Asian stocks fell after reports China may consider cutting its investment in European government bonds, and the euro weakened amid concerns the European debt crisis will worsen. Japanese benchmark index Nikkei 225 fell 20.20 points, or 0.21%, to trade at 9,502.46.

US stocks fell, with the Dow Jones Industrial Average closing below 10,000 for the first time since February, as reports that China may review investments in European government bonds spurred concern the credit crisis will worsen and wiped out an early rally. The Dow fell 69.30 points, or 0.69%, to 9,974.45.

European stocks rebounded from an eight-month low as investors speculated that recent declines may have been overdone and stronger-than-forecast U.S. data bolstered confidence the debt crisis won`t derail the economy. UK`s benchmark index FTSE 100 advanced 97.40 points, or 1.97%, to end at 5,038.08.

Oil prices rebounded sharply Wednesday after weeks of being knocked down by economic uncertainty. Benchmark crude for July delivery added USD 2.76 to settle at USD 71.51 a barrel on the New York Mercantile Exchange. The price was USD 86.84 on April 6.

In the spot market, the Dollar Index increased 0.01% to 87.13. It touched a high of 87.32 and a low of 87.04 after opening at 87.30. (21:55 ET)