Global markets: SGX Nifty to Chinese inflation — top triggers for D-St today

Global market update: The US equity market turned sour on Thursday after a rout in the banking sector stocks. However, US dollar rates continue to remain favourite asset for investors as Dollar Index sustained above 105 levels. However, US dollar has opened lower in early morning deals on Friday. US bond yield is also witnessing huge profit booking on Friday morning deals. However, softening inflation print in China reported on Thursday is expected to provide support to the global indices.

Here we list out key triggers from the global markets that may impact stock market today:

US stock market

On fear of US Fed interest rate hike, Wall Street witnessed huge selling pressure on Thursday. Dow Jones lost 1.66 per cent, tech heavy Nasdaq crashed 2.05 per cent whereas S&P 500 nosedived 1.85 per cent.

“Currently, investors are steeling for Friday’s payrolls report. The data released on Thursday showed weekly jobless claims had risen to 211K during the week ending March 4, ahead of expectations for 195K and marking the first time claims surpassed 200K since early January. These numbers set the stage for Friday’s monthly jobs report, with even slightly stronger-than-forecast figures expected to cement bets for a bigger hike at the March 21-22 Fed meeting, which will act as a headwind for the global stock market. It’s also worth noting that cryptocurrencies slid with Bitcoin falling the most since November amid Silvergate’s meltdown,” said Marc Despallieres, Chief Strategy and Trading Officer at Vantage.

Providing relief to the global market observers, China reported one per cent YoY (year-on-year) growth in Consumer Price Index (CPI), which is slowest inflation print since February 2022.

Asian markets today

In early morning deals on Friday, the Japanese Nikkei is down 1.17 per cent, Shanghai index is down0.63 per cent, Hong Kong’s Hang Seng has crashed 2.13 per cent whereas South Korean KOSPI has dipped to the tune of 1 per cent.

Signaling weak opening on Dalal Street, SGX Nifty today opened lower at 17,622 and went on to hit intraday low of 17,458. Currently, SGX Nifty is quoting 17,493, 125 points below its Thursday close.

Speaking on SGX Nifty outlook, Anuj Gupta, Vice President — Research at IIFL Securities said, “SGX Nifty is standing at support levels and some shot covering can be witnessed at support levels as today is weekend session as well. So, some relief rally can be expected around support zone of 17,400 and 17,280 levels.” Anuj Gupta of IIFL Securities said that SGX Nifty is facing resistance at 17,650 levels and breach of this hurdle would mean further 100 to 150 points rally in the index.

US dollar rate

After logging strong gains on Wednesday, US dollar rate eased on Thursday and Friday as Dollar Index has went off 0.08 per cent to 105.150 levels.

“The US dollar remains depressed after posting the biggest daily loss in a week, as cautious mood ahead of the US data, downbeat early signals for NFP weigh on greenback. The DXY index was moving in a downside path for the whole Thursday, and fell 0.38% on a daily basis,” Marc Despallieres said.

US bond yield

US bond yield has witnessed heavy profit booking on Friday morning deals. US 10 year bond yield has corrected 1.25 per cent to 3.874 levels while US 30 year bond yield has crashed 0.93 per cent to 3.834 mark.

Crude oil price

Slump in crude oil price continued on Friday morning deals as crude oil price corrected 0.08 per cent to $75.51 per barrel, signaling ease in global inflation.

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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