BackGlobal market: SGX Nifty to US debt ceiling deal - key triggers that will drive stock market today
The US stock futures also gained in the early Asian trade after the deal to raise the federal debt limit with the contracts for the S&P 500 and Nasdaq 100 rising about 0.5%.
PremiumAsian markets traded mostly higher Monday on improved risk appetite following the deal between US President Joe Biden and House Speaker Kevin McCarthy to raise the debt ceiling.
The US stock futures also gained in the early Asian trade after the deal to raise the federal debt limit with the contracts for the S&P 500 and Nasdaq 100 rising about 0.5%.
President Biden and Speaker McCarthy reached a final agreement to avert US default and to suspend the debt limit through January 2025.
Investors will now shift focus to the Federal Reserve’s next monetary policy meeting in June and other major economic data, including the jobs report for May.
On the domestic front, equity markets rallied led by strong economic growth forecast, expectation of a normal monsoon and consistent FII buying.
Also Read: Wall Street week ahead: After US debt deal, investors’ focus on jobs data
US Markets
US markets ended higher on Friday led by prospects of a US debt ceiling deal and a rally in tech stocks.
The Dow Jones Industrial Average rose 1% to 33,093.34, while the S&P 500 gained 1.30% to 4,205.45. The tech-heavy Nasdaq rallied 2.19% to 12,975.69.
US markets remain closed for Memorial Day on Monday.
Asian Markets
Japanese shares led the rally in the region with the Nikkei 225 gaining 2% at the open, continuing hitting 33-year record levels, while the Topix also gained more than 1%.
The Shanghai Composite Index traded around 0.23% higher at 3,219.76, while the Shenzhen Composite Index gained 0.24% to 2,017.36. Singapore’s FTSE Straits Times Index traded flat.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%.
The SGX Nifty was trading 0.87% higher at 18,709, indicating a positive start for the Indian market.
Indian Market
The Indian equity markets gained 1% on Friday led by sustained inflow of foreign funds amid expectations that a normal monsoon would propel domestic growth expectations further.
On Friday, the benchmark Sensex rallied 629.07 points, or 1.02%, to close at 62,501.69, and the Nifty ended at 18,499.35, higher by 178.20 points, or 0.97%.
Energy
Crude oil prices rose after a tentative deal over the weekend on the US debt ceiling.
The US West Texas Intermediate rose 0.69% to $73.17 a barrel, while the Brent oil gained 0.55% to $77.37 per barrel.
Bullion
Gold prices inched lower amid improved risk appetite, lowering the demand for the safe haven metal. Spot gold fell 0.2% to $1,942.09 an ounce.
Currencies
The US dollar index strengthened, while the euro was little changed at $1.0719. The Japanese yen fell 0.2% to 140.89 per dollar and the offshore yuan was little changed at 7.0791 per dollar. The Australian dollar rose 0.1% to $0.6525.
(With inputs from agencies)
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