Global market update: SGX Nifty to Dow Jones — top factors that may dictate D-St
Global market update: The US equity market whipsawed on Wednesday, even after the Fed chief’s reassurance that no decision has been made on the size of a rate increase in March and the central bank is not seeking to cause a recession. The US dollar was steady on the day but down from three-month highs reached earlier on Wednesday whereas SGX Nifty today opened sideways, signaling tepid opening on Dalal Street on Thursday.
Here we list out important global market triggers that may dictate Indian stock market today:
US stock market
On Wall Street, Dow Jones index went off 0.18 per cent, S&P 500 added 0.14 per cent whereas tech heavy weight Nasdaq surged 0.40 per cent on Wednesday.
“Jerome Powell’s testimony to American lawmakers bolstered bets the Federal Reserve will have no alternative but remain hawkish in the months to come, especially after another round of jobs figures came out on the hot side. For one, Powell reiterated that officials are likely to take rates higher than previously anticipated, and could move at a faster pace if needed. Then, there’s all the anxiety building ahead of the next economic readings. Policymakers will scrutinize Friday’s jobs report for three key indicators: payrolls, wage gains and the unemployment rate,” said Marc Despallieres, Chief Strategy and Trading Officer at Vantage.
Asian markets
In early morning deals on Thursday, the Japanese Nikkei is up 0.62 per cent, South Korean KOSPI went off 0.10 per cent, Shanghai index added 0.08 per cent whereas Hong Kong’s Hang Seng is down 0.36 per cent.
SGX Nifty
In early morning session on Thursday, SGX Nifty opened flat but in positive territory. SGX Nifty today opened lower at 17,785 levels. But, the index soon caught momentum and surged to its intraday high of 17,825 levels.
Expecting flat opening on Dalal Street, Anuj Gupta, Vice President — Research at IIFL Securities said, “SGX Nifty has recovered from its support levels placed at 17,550 and 17,680 levels. One should maintain buy on dips as momentum reading indicates strong support for the index at 17,680 levels.”
US dollar rate
In early morning session, US dollar sustained above 105 levels and added 0.01 per cent further to 105.672 levels.
“The US dollar was steady on the day but down from three-month highs reached earlier on Wednesday after Federal Reserve Chairman Jerome Powell offered no major surprises on his second day of testimony before Congress and as investors waited for jobs data on Friday,” Marc Despallieres said.
Gold rates today
The Gold was little changed up with 0.02% daily gain, as it looks for more clues during on Wednesday, amid a firmer bearish bias due to the hawkish Federal Reserve (Fed) concerns and recession woes. The XAUUSD surged above $1820 marks during the early American trading session, but then lost bullish momentum and fell back around $1814 region.
Crude oil price
In early morning session, crude oil prices added 0.21 per cent and hit $76.60 per barrel levels. Crude oil price today opened at $76.46 per barrel and went on to hit intraday high of $ 76.68 per barrel levels.
US bond yield
In early session on Thursday, US 10 years bond yield gained 0.09 per cent to 3.980 whereas US 30 years bond yield is up by 0.25 per cent to 3.887 levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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