(fxcue news) - Indian shares look set to open higher on Monday after U.S. Federal Reserve Chair Jerome Powell rang the bell to start rate cuts, though he didn't provide specific information on when, or by how big any cuts to the borrowing cost would be. Meanwhile, rising oil prices due to an escalating conflict in the Middle East and volatility on account of upcoming F&O August series expiry may lead to profit taking at higher levels. Tensions escalated in the Middle East after Israel's attack on Lebanon triggered a chilling warning from its Arab ally. Israel and Lebanon's Hezbollah have launched their heaviest exchange of fire after months of strikes and counter strikes, raising fears of an all-out war. On the macro-economic front, reports on budget deficit, foreign exchange reserves, infrastructure output and GDP are due later in the week. Trent, Bharat Electronics, Divi's Laboratories, LTIMindtree, Bharat Dynamics, Bank of Maharashtra, Cochin Shipyard and Central Bank of India could be in focus today after the FTSE All World Index and the Nifty 50 announced rejigs. Asian markets were broadly higher this morning, though Japan's Nikkei fell about 1 percent as exporters were hit by a stronger yen. Gold held steady above $2,500 per ounce and oil extended gains as the Middle East braced for escalating conflict. U.S. stocks rose sharply on Friday and the 10-year Treasury yield dropped to just below 3.80 percent after Fed Chair Powell indicated the time has come policy to adjust. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks," Powell said at the Jackson Hole Economic Symposium. The Dow climbed 1.1 percent and the S&P 500 added 1.2 percent to reach their highest closing levels since reaching record highs in mid-July while the tech-heavy Nasdaq Composite surged 1.5 percent. The German DAX gained 0.8 percent, France's CAC 40 rose 0.7 percent and the U.K.'s FTSE 100 inched up half a percent.