Global market: SGX Nifty trades flat, Asian market mixed

US Federal Reserve Chair Jerome Powell is scheduled to give his semi-annual report to Congress on Wednesday after the policymakers kept interest rates unchanged at their meeting last week. Analysts expect a hawkish tone from Powell as the central bank forecasts around two more quarter-point rate hikes this year. 

Shares of economic bellwether FedEx Corp. plunged 4% in aftermarket trading as its 2024 outlook missed analyst consensus estimates on weakened demand and rising costs.

On the domestic front, focus will remain on Prime Minister Narendra Modi’s visit to the US as this is expected to strengthen ties and deal wins. 

Meanwhile, SGX Nifty traded little changed at 18,880, indicating a flat start for the Indian indices.

Asian Markets

Japan’s Nikkei 225 gained 0.24%, reserving its earlier losses, while the Topix rose 0.2%. 

South Korea’s Kospi declined 0.46%, while the Kosdaq was up marginally. Hong Kong’s Hang Seng index futures fell over 260 points to 19,347.

Australia’s S&P/ASX 200 fell 0.21%.

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Wall Street

US stocks ended lower on Tuesday dragged by selling in energy stocks and as investors await Federal Reserve chairman Jerome Powell’s congressional testimony.

The S&P 500 fell 20.88 points, or 0.47%, to close at 4,388.71, while the Dow Jones Industrial Average lost 245.25 points, or 0.72%, to end at 34,053.87. The Nasdaq Composite closed 22.28 points, or 0.16%, lower at 13,667.29.

Europe

European shares fell on Tuesday with the pan-European STOXX 600 index declining 0.6%.

Britain’s FTSE 100 declined 0.3% to 7,569.31, while Germany’s DAX dropped 0.6% to 16,111.32. France’s CAC 40 fell 0.3% at 7,294.17.

Among stocks, British auto retailer Lookers rallied 33.9% as Global Auto Holdings said it would buy the peer for about 465.4 million pounds in cash. German speciality chemicals maker Lanxess plunged 15.4% after cutting its second-quarter and annual core profit forecasts.

Currencies

The US dollar was firm following surprisingly strong US housing data, while the focus turned to Federal Reserve Chair Jerome Powell’s appearance before Congress later in the day, Reuters reported.

The US dollar index was steady at 102.55. The greenback was marginally stronger at $1.0916 per euro overnight. Sterling was at $1.2760.

The Japanese yen was also firm at 140.50 per dollar, while the offshore Chinese yuan fell about 0.3% to 7.1826 per dollar, near a seven-month low. 

The Aussie dollar fell 0.9% overnight and last bought $0.6790 and the New Zealand dollar was dragged lower at $0.6168.

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Energy

Crude oil prices declined as the dollar strengthened and amid mixed demand outlook from China.

Brent futures fell 0.25% to $75.71 a barrel and US West Texas Intermediate (WTI) crude futures were down 1.78% at $70.50.

Gold rate today

Gold prices traded in a narrow range as traders refrained from making big bets ahead of Fed Chair Powell’s congressional testimony, which could offer further insight into the central bank’s interest-rate hike plan, Reuters reported.

Spot gold was almost unchanged at $1,936.99 per ounce and US gold futures too were little changed at $1,948.20.

(With inputs from Reuters)

Updated: 21 Jun 2023, 07:05 AM IST