Crude Oil Surges to $107 as Fed Prepares Interest Rate Hike

Asian markets were trading mixed on Tuesday after US equities closed lower in the previous session. The Indian market, reopening after a one-day holiday, showed signs of a positive start with GIFT Nifty trading higher.

The global markets remain focused on interest rates as the US Federal Reserve is widely expected to raise rates on Wednesday, while the Bank of England and Bank of Japan are also expected to tighten policy on Thursday. Higher-than-expected Indian retail inflation has revived expectations of a possible repo rate hike by the Reserve Bank of India in October.

Crude oil prices have again moved up to around $107 a barrel, adding to inflation and economic growth concerns. GIFT Nifty closed Monday's derivatives session at 23,500 and rose to 23,550 in morning trade, pointing to a potentially positive opening for Indian equities.