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Business News/ Markets / Stock Markets/  6 things that changed for the stock market overnight - Gift Nifty to spike in US treasury yields
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6 things that changed for the stock market overnight - Gift Nifty to spike in US treasury yields

The Asian markets fell to a 11-month low following overnight selloff in US stocks after resilient US economic data led Treasury yields to fresh highs. The US 10-year Treasury yields reached above 4.75%, while the 30-year yield traded near the highest level since 2007.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4% to its lowest since November (Image: Reuters)Premium
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4% to its lowest since November (Image: Reuters)

The Indian stock market continues to remain under selling pressure and is expected to open lower Wednesday on the back of weak global cues.

The Asian markets fell to a 11-month low following overnight selloff in US stocks after resilient US economic data led Treasury yields to fresh highs. The US 10-year Treasury yields reached above 4.75%, while the 30-year yield traded near the highest level since 2007.

The domestic benchmark indices ended around half a percent lower in the previous session. The Sensex declined 316 points to end at 65,512, while the Nifty 50 fell 110 points to 19,529 on Tuesday.

“Given the global concerns of more US rate hikes along with 16-year high US 10-year bond yield and 7-month high Dollar Index, the sentiments remain dented and thus is resulting in profit booking. In the near term, we expect this weakness to persist with stock-specific action," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Investors would continue to take cues from economic data to be release globally and domestically with all eyes on RBI monetary policy due on October 6, he added.

Also Read: Nifty 50, Sensex today: What to expect from stock market indices in trade on October 4

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4% to its lowest since November, with Australian shares also hitting an 11-month trough and South Korea's Kospi back from a break with a 1.8% fall, Reuters reported.

Here are key domestic and global market cues for Sensex today:

Asian Markets

Asian markets traded lower following overnight drop on Wall Street and a spike in treasury yields that hit its highest level in 16 years.

Japan’s Nikkei 225 plunged 1.45%, while the Topix dropped 1.31%. South Korea’s Kospi fell 2.16% and the Kosdaq dipped 1.17%.

Hong Kong’s Hang Seng index futures were at 17,322 compared to the HSI’s close of 17,331.22.

China’s markets are shut for a weeklong holiday.

Australia’s S&P/ASX 200 traded 0.42% lower.

Meanwhile, Gift Nifty was trading at 19,434 as against Nifty futures’ previous close of 19,563, indicating a gap-down start for the Indian benchmark indices.

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Wall Street

The US stock market indices ended sharply lower on Tuesday as fresh economic data raised bets that the US Federal Reserve may need to keep interest rates higher for longer.

The Dow Jones Industrial Average plunged 430.97 points, or 1.29%, to 33,002.38, while the S&P 500 dropped 58.94 points, or 1.37%, to 4,229.45. The Nasdaq Composite ended 248.31 points, or 1.87%, lower at 13,059.47.

The Dow turned negative for the year for the first time since June and ended at its lowest level since May 31. The Nasdaq also closed at its lowest since May 31.

Among stocks, Amazon shares fell 3.6% and Microsoft share price dipped 2.6%. Nvidia shares fell over 3%.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — October 4

US job openings rise in August

US job openings unexpectedly rose in August, pointing to tight labor market conditions that could compel the Federal Reserve to raise interest rates next month, Reuters reported.

According to the Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS report, job openings jumped 690,000 to 9.610 million on the last day of August.

US Treasury yields hit 16-year highs

Resilient economic data and hawkish comments from the US Federal Reserve officials raised expectations that the interest rates will remain higher for longer leading to a sharp spike in the treasury yields. Concerns about growing Treasury supply and high oil prices are also reducing demand for US debt.

On Tuesday, benchmark 10-year notes reached 4.806% and 30-year yields hit 4.950%, both the highest levels since 2007. 

The 10-year US Treasury yield was up 11 basis points at 4.793% on Wednesday. The yields are up some 70 basis points since the start of September. The 30-year US Treasury yield rose as high as 4.924%, its highest since 2007.

Gold rate near 7-month lows

Gold prices traded near seven-month lows as a surge in US dollar and bond yields meant that there was room for a further monetary policy tightening. Bullion prices fell for a seventh consecutive session on Tuesday to touch their lowest levels since March.

Spot gold was flat at $1,823.59 per ounce, while US gold futures eased 0.1% to $1,839.20 per ounce.

HDFC Bank revamps top management

HDFC Bank is revamping some parts of top management as the private lender seeks to propel its mortgages business, three months after it acquired another lender, Bloomberg reported.

The bank detailed the changes in a memo to employees late Sunday, according to people familiar with the matter, who asked not to be identified discussing private information, the report added.

Read here: HDFC Revamps Top Management After Mega Merger

Catch Live Market Updates here

(With inputs from Reuters)

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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Published: 04 Oct 2023, 07:47 AM IST
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