Gift Nifty, Asian markets, among other global cues for Indian stock market

A report from ADP Research Institute showed hiring by private employers in the US was much stronger in June than economists expected, with nearly twice as many jobs created than forecast.

Strong labour market data spurred the threat of inflationary pressures, leaving room for more rate hike by the Fed.

Earlier, the minutes of the Federal Reserve’s June meeting also showed that most central bank officials would support more interest rate increases ahead.

In Asia, Japanese household spending fell 4.0% in May from a year earlier, a third month of decline, government data showed, Reuters reported.

A decline in Asian stocks also followed a plunge in shares of Samsung Electronics Co Ltd after the world’s largest memory chip and smartphone maker estimated 96% fall in second-quarter operating profit led by an ongoing chip glut.

The company estimated its operating profit fell to 600 billion won ($458.83 million) in April-June, from 14.1 trillion won a year earlier in a short preliminary earnings statement, as per Reuters report.

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Asian Markets

Japan’s Nikkei 225 declined 1.13%, while the Topix dropped 1.1%. South Korea’s Kospi fell 1.14%. Hong Kong’s Hang Seng index futures also hinted at a lower opening.

Australia’s S&P/ASX 200 fell 1.8%.

Gift Nifty was trading 9.50 points, or 0.05%, higher at 19,497.50, indicating a lower start for the Indian indices.

Wall Street

US markets ended lower after private hiring data underlined the inflationary threat from the strong labor market, adding fears of aggressive interest rate hike by the Federal Reserve. This pushed Treasury yields sharply higher and dragged equities lower.

Among indices, the S&P 500 posted its biggest daily percentage drop since May 23, while the Dow Jones registered its biggest single-day fall since May 2.

The S&P 500 lost 35.23 points, or 0.79%, at 4,411.59 and the Dow Jones Industrial Average ended 366.38 points, or 1.07%, lower at 33,922.26. The Nasdaq composite dropped 112.61 points, or 0.82%, to close at 13,679.04.

Energy and consumer discretionary shares led declines among the sectors, while gains in megacaps limited losses. Among stocks, Exxon Mobil Corp fell 3.7% and JetBlue Airways shares dropped 7.2%, while shares of Microsoft rose 0.9% and Apple gained 0.3%.

Europe

European markets declined, with the pan-European STOXX 600 index closing 2.3% lower. The EURO STOXX 50 lost 2.9% to 4,223.09. Shares in the real estate sectors plunged around 4.2%, while technology stocks tumbled 3%.

Britain’s FTSE 100 declined 2.2% to 7,280.50, while Germany’s DAX lost 2.6% at 15,528.54. France’s CAC 40 dropped 3.1% at 7,082.29. 

Energy

Crude oil prices eased, but were set for a second weekly gain after top producers Saudi Arabia and Russia decided to tighten supplies, while US crude stockpiles fell.

Brent futures fell 0.14% to $76.41 a barrel, while US West Texas Intermediate (WTI) crude eased 0.10% to $71.73 a barrel.

Gold Price Today

Gold prices on Friday were on track for a fourth consecutive weekly loss as investors bet the Federal Reserve will keep interest rates higher for longer, weighing on non-yielding bullion, Reuters reported.

Spot gold held steady at $1,911.85 per ounce, but was down 0.4% for the week. US gold futures rose 0.1% to $1,917.70.

(With inputs from Reuters)

Updated: 07 Jul 2023, 07:14 AM IST