Back6 things that changed for market overnight: Gift Nifty, US jobs data among global market cues for Sensex today
Asian markets traded mostly higher following overnight rally on Wall Street led by technology stocks. The US stock market ended higher on Tuesday after weak monthly job openings data raised expectations of a pause in interest rate hikes by the US Federal Reserve.
PremiumThe Indian stock market is expected to open higher on Wednesday led by positive global cues amid gains in Asian markets and US stock indices.
On Tuesday, the Indian benchmark equity indices, Sensex and Nifty, ended in the green for the second consecutive session, supported by gains in the shares of select heavyweights amid positive global cues.
“Market is moving in a range and we expect this trend to continue given the data-packed week and monthly derivatives expiry. Further, consistent selling by FIIs and poor monsoon in the month of August raised concern among investors, thus keeping the upside limited," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mostly higher following overnight rally on Wall Street led by technology stocks.
Japan’s Nikkei 225 opened 0.61% higher, while the Topix rose 0.56%. South Korea’s Kospi rallied 0.81% and the Kosdaq jumped 0.98%.
Hong Kong’s Hang Seng index futures were trading higher at 18,669 as compared with the HSI’s close of 18,484.03.
In Australia, the S&P/ASX 200 rose 0.61% ahead of the inflation data.
Meanwhile, Gift Nifty was trading higher at 19,423 as against Nifty futures’ previous close of 19,345.75, indicating a strong start for the Indian benchmark indices.
Also Read: Day trading guide for today: Six buy or sell stocks for Wednesday —August 30
Wall Street
The US stock market ended higher on Tuesday after weak monthly job openings data raised expectations of a pause in interest rate hikes by the US Federal Reserve.
The Dow Jones Industrial Average rallied 292.69 points, or 0.85%, to 34,852.67, while the S&P 500 jumped 64.32 points, or 1.45%, to 4,497.63. The Nasdaq Composite ended 238.63 points, or 1.74%, higher at 13,943.76.
The 10-year Treasury yield eased to 4.11%, while the yield on the two-year note fell below 5%.
Among stocks, Tesla shares rallied 6.2%, Nvidia share price jumped 4.5% and Meta Platforms gained over 2%.
VinFast share price snapped a six-day winning streak and crashed 44%, erasing $83 billion of market value.
Verizon and AT&T rose nearly 3% each after Citi upgraded the telecom companies to “buy" from “neutral". US-listed PDD Holdings rose 16% after the company beat second-quarter revenue estimates.
Also Read: Buy or sell: Vaishali Parekh recommends buying these 3 stocks today - 30 August
US job openings data
US job openings dropped for a third straight month in July, raising hopes that the Federal Reserve would keep interest rates high for some time.
Job openings, a measure of labor demand, declined 338,000 to 8.827 million on the last day of July, the lowest level since March 2021, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday.
Data for June was revised lower to show 9.165 million job openings instead of the previously reported 9.582 million. Economists polled by Reuters had forecast 9.465 million job openings in July.
VinFast shares lose $83 billion
The staggering rally in VinFast share price halted on Tuesday, with the stock snapping a six-day winning streak. VinFast shares cracked 44% and erased $83 billion of market value on Tuesday.
The electric cars maker VinFast Auto Ltd. made its debut in a SPAC listing on August 15 and has surged 688% since its listing through Monday’s close.
However, despite Tuesday’s fall, VinFast market capitalization stands at nearly $107 billion, which is still larger than BlackRock Inc. and FedEx Corp.
Chinese banks likely to cut existing mortgage rates
Some Chinese state-owned banks will soon cut interest rates on existing mortgages, three sources told Reuters on Tuesday. The move will be an effort to revive the country’s debt crisis-hit property sector and bolster a sputtering economy.
The quantum of the cut on existing mortgages would be different for different types of clients and in different cities, Reuters reported quoting sources.
The reduction could be as much as 20 basis points in some cases, the report added.
Country Garden to issue HK$270 million of shares to offset loan
Country Garden Holdings Co. plans to issue HK$270 million ($34.4 million) of new shares to pay off money it owes to other companies.
The distressed developer will issue about 350.6 million shares at HK$0.77 each. The subscriber is wholly owned by Kingboard Holdings Ltd.
Country Garden won’t receive any cash from the proceeds, it said. The shares issued will be used to set off payments it owes to the subscriber, as per a filing on Hong Kong stock exchange.
(With inputs from Reuters)
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