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Business News/ Markets / Stock Markets/  9 things that changed for the stock market overnight - Gift Nifty to dovish US Fed officials
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9 things that changed for the stock market overnight - Gift Nifty to dovish US Fed officials

Asian markets traded weaker while the US stocks ended higher overnight amid rising expectations that the US Federal Reserve will not raise interest rates further.

Japan’s Nikkei and Topix traded lower, while South Korea’s Kospi and Kosdaq also declined. (Photo: AP)Premium
Japan’s Nikkei and Topix traded lower, while South Korea’s Kospi and Kosdaq also declined. (Photo: AP)

The Indian stock market indices, Sensex and Nifty 50, are expected to open higher on Wednesday amid mixed global cues. The Asian markets traded weaker while the US stocks ended higher overnight amid rising expectations that the US Federal Reserve will not raise interest rates further.

On Tuesday, domestic frontline indices ended with gains as fag-end buying helped snap two-day losing run despite mixed global cues. 

The Sensex ended 204.16 points, or 0.31%, higher at 66,174.20, while the Nifty 50 gained 95.00 points, or 0.48%, to close at 19,889.70.

“The gradual return of FIIs in the month of November post the global sell-off during the three months of (Aug to Oct) is having a steady positivity in India. The market may await state exit polls for further cues, in the short-term," said Vinod Nair, Head of Research at Geojit Financial Services.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mostly lower on Wednesday following mixed comments from the US Federal Reserve board members. 

Japan’s Nikkei and Topix traded lower, while South Korea’s Kospi and Kosdaq also declined. Hong Kong’s Hang Seng index futures signaled a weak opening. Australia’s S&P/ASX 200 gained.

Also Read: Dividend stock: Milkfood shares to trade ex-dividend today

Gift Nifty

Gift Nifty was trading around 20,025 levels as against Nifty futures’ previous close of 19,953, indicating a positive start for the Indian benchmark indices.

US Stock Market

US stock market indices ended marginally higher on Tuesday amid mixed remarks from Federal Reserve officials and upbeat consumer data. The Dow Jones Industrial Average rose 83.51 points, or 0.24%, to 35,416.98, while the S&P 500 gained 4.46 points, or 0.10%, to end at 4,554.89 points. The Nasdaq Composite closed 40.73 points, or 0.29%, higher at 14,281.76.

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US Consumer Confidence Rebounds

US consumer confidence rose in November after three straight monthly declines, while inflation expectations fell.

The Conference Board said its consumer confidence index increased to 102.0 this month from a downwardly revised 99.1 in October. Economists polled by Reuters had forecast the index dipping to 101.0. 

Consumers' 12-month inflation expectations fell to 5.7% from 5.9% in October. 

US annual home price growth accelerated again in September. Home prices were up 6.1% YoY, up from an upwardly revised 5.8% increase in August.

Fed’s Waller Flags Pivot

US Federal Reserve policymakers signaled that the central bank is done with rate hikes and will be able to ease policy next year.

“I am increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%," said Governor Christopher Waller, one of the most hawkish Fed officials, and also “reasonably confident" of doing so without a sharp rise in the unemployment rate, now at 3.9%.

If the decline in inflation continues “for several more months ... three months, four months, five months ... we could start lowering the policy rate just because inflation is lower," he said.

Also Read: F&O ban list: Balrampur Chini, BHEL, Granules, Indiabulls Housing Finance placed under futures & option ban

US Dollar Weakens

The dollar index, which measures its value against six major currencies, fell to a more than three-month low of 102.57. The index was eyeing a nearly 4% loss for November, its worst monthly performance in a year.

US Treasuries

The US Treasuries extended their rally and the yields dropped, while the dollar weakened on speculation the Federal Reserve is done with interest-rate hikes and will be able to ease policy next year.

The yield on the benchmark US 10-year Treasury note on Tuesday fell 2 basis points to 4.31%, while that on the 30-year bond eased by 2 bps to 4.499%. The two-year US Treasury yield dropped 16 basis points to around 4.72% 

Gold Price Today

Gold prices steadied near the highest level since May, with recent strength fueled by a slump in Treasury yields, Reuters reported.

MCX gold price hit their all-time high on Tuesday as it surged to 62,670 per 10 grams.

Also Read: Oil prices soars over 2% amid focus on OPEC+, Brent crude at $81.86

Oil Price Today

Crude oil prices edged higher as traders counted down to a key OPEC meeting on supply. 

Brent crude futures, the global benchmark, rose 0.44% to $82.04 a barrel, while US West Texas Intermediate crude futures gained 0.62% to $76.88 a barrel.

(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: 29 Nov 2023, 07:17 AM IST
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