Global markets: SGX Nifty to Japan’s CPI data — key triggers for stock mkt today

SGX Nifty today opened higher in early morning deals, signaling positive opening on Dalal Street. Meanwhile, Japan’s Consumer Price Index (CPI) for March 2023 remained unchanged in comparison to prior month but it remained well above well above the Bank of Japan’s target.

Here we list out key global market triggers:

US stock market

Amid concern about the looming economic slowdown in US due to bank crisis, key benchmark indices on Wall Street ended lower on Thursday. Dow Jones lost 0.33 per cent, S&P 500 index dipped 0.60 per cent whereas tech heavy Nasdaq nosedived 0.80 per cent.

On reason for fall in the US stock market, Lewis Grant, Senior Global Equities Portfolio Manager at Federated Hermes Ltd said, “The global macro environment has weighed heavy on a much-anticipated earnings week. We note the large intra-day swings, both at index level and within individual shares. There is clearly fear at work. The overall market is left somewhat directionless as investors await further macro releases and forthcoming earnings announcements.”

Japan’s CPI data

Japanese CPI data for March 2023 remained unchanged to the prior week but the inflation data is above Bank of Japan’s target. Experts believe that government’s subsidy had little impact in government of Japan’s efforts to bring down commodity and other essential item’s price in Japan.

Asian stock market

Following slide in the US stock market, Asian stock markets slid towards its worst in the last one and half month. Early in the Asia day MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3 per cent lower and down 1 per cent for the week so far, its worst performance since bank stability worries gripped markets in the middle of March.

In early morning deals, Japan’s Nikkei went off 0.02 per cent, Hong Kong’s Hang Seng lost 0.12 per cent, Shanghai index lost 0.17 per cent while South Korean KOSPI nosedived 0.60 per cent.

On reasons for fall in the Asian stock market, Tapas Strickland, head of market economics at national Bank of Australia said, “The trend higher in jobless claims clearly shows a slowing in the labour market and plays to views of a US recession in 2023.”

Signaling positive opening on Dalal Street on the weekend session, SGX Nifty today opened higher and continue to trade in green territory for more than an hour after the Singapore stock market’s opening bell today. SGX Nifty is trading in tight 90 points rage and sustaining above 17,600 levels.

“SGX Nifty today opened upside and the index has been trading sideways to positive, which signals positive opening on Dalal Street,” said Anuj Gupta, Vice President — Research at IIFL Securities.

US dollar rate

On account of speculations about US Fed rate hike, US dollar continue to sustain above the psychological 101 levels after hitting one year low of 100.80 levels. In morning session on Friday, the US Dollar Index went off 0.03 per cent to 101.535 levels.

Crude oil prices

Fearing dip in demand due to expected US Fed’s rate hike, crude oil price extended its losing streak on Friday morning deals. In morning deals on Friday, WTI crude oil price was oscillating around $77 per barrel levels while Brent crude oil price was quoting around $80.80 per barrel.

US bond yield

In early morning deals on Friday, US 10 year bond yield dipped 0.43 per cent to 3.530 levels whereas US 30 year bond yield lost 0.27 per cent to 3.743 levels.

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