(RTTNews.com) – Nifty futures on the Singapore Exchange are inching higher, indicating a positive start for Indian markets on Wednesday. That said, underlying sentiment will remain cautious as investors fret over slowing growth in China, Japan and the euro zone.

The U.S. dollar recovered broadly against other major currencies on Tuesday after worrying data out of the euro zone and United Kingdom added to signs of faltering growth in Europe. The Indian rupee erased early gains to close at a one-week low of 61.42 against the greenback on the back of recovery of dollar in the global market amid signs of a weak and uneven global economic recovery.

Government data released after market hours yesterday showed that India’s trade deficit widened sharply to $ 14.25 billion in September from $ 6.12 billion a year ago, due to a surge in oil and gold imports. Exports rose by a marginal 2.73 percent to $ 28.9 billion in the month largely due to global factors.

The benchmark indexes Sensex and Nifty fell around 0.1 percent and 0.3 percent, respectively on Tuesday as renewed fears of an economic slowdown in Germany overshadowed positive sentiment generated by strong earnings results by oil & gas major Reliance Industries and tame inflation data.

<b>Asian Markets </b>

The Asian markets are turning in a mixed performance as benign inflation data from China and another round of disappointing data out of Europe added to fears of a faltering global economic recovery. C

hina’s Shanghai Composite is down 0.4 percent, shares in Japan and South Korea are marginally lower, Malaysia’s KLSE Composite is tumbling over 2 percent and the Taiwan Weighted average is declining 0.9 percent, while the markets elsewhere are posting modest gains.

<b>U.S. And European Markets </b>

U.S. stocks ended mixed overnight, with the Dow edging down marginally to close lower for the fourth straight session, while the tech-heavy Nasdaq rose 0.3 percent and the S&P 500 added 0.2 percent. While airline stocks surged higher, the energy sector reeled under selling pressure along with the price of crude oil, which plunged the most in two years triggered by global growth concerns.

European stocks posted modest gains on Tuesday, with miners and automakers leading the rebound, even as Germany cut its growth outlook and a closely-watched survey underscored fears about slowing growth in Europe’s largest economy. While the German DAX and France’s CAC 40 rose about 0.2 percent each, the U.K.’s FTSE 100 advanced 0.4 percent.

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