Global market: Asian markets rise, SGX Nifty up amid strong global cues; Key triggers for Indian market today
Indian market is expected to continue the rally amid sustained foreign capital inflows. Investors will watch out for the Reserve Bank of India (RBI) Monetary Policy Committee meeting this week, which is largely expected to hold interest rates.
PremiumAsian markets traded higher Monday following a rally on Wall Street amid prospects of a pause in rate hikes by the US Federal Reserve amid mixed US jobs report and the resolution of the debt-ceiling issue.
The US President Joe Biden signed a bill to suspend the nation’s debt limit through 1 January 2025, averting default on its financial obligations.
Market sentiment improved on rising expectations that the US Federal Reserve will not increase interest rates this month after a mixed US jobs report. Data on Friday showed the US economy added 339,000 jobs last month, beating most estimates.
This bolstered expectations of Fed hikes in July, with markets tipping a 50% chance for that. However, moderating wage growth and rising jobless rate in Friday's jobs report argued for a case of pause in June, Reuters reported.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies led by Russia, or OPEC+ decided to reduce overall production targets from 2024 by a further total of 1.4 million barrels per day (bpd). Saudi Arabia, OPEC cartel's dominant member, will make deep production cuts of 1 million bpd starting from July.
On the domestic front, the Indian market is expected to continue the rally amid sustained foreign capital inflows. Investors will watch out for the Reserve Bank of India (RBI) Monetary Policy Committee meeting this week, which is largely expected to hold interest rates.
The Foreign Portfolio Investors (FPIs) pumped in ₹43,838 crore in Indian equities in May, the highest level in nine months, supported by strong macroeconomic fundamentals, and reasonable valuations.
US Market
The Dow Jones Industrial Average rallied 2.12% to close at 33,762.76, on Friday. The S&P 500 jumped 1.45% to end at 4,282.37, while the tech-heavy Nasdaq closed 1.07% higher at 13,240.77,
Asian Market
Japan’s Nikkei surged 1% to a 33-year high, while the Topix gained over 1% higher.
South Korea Kospi rose 0.5%, while Australian shares gained 1%.
SGX Nifty was trading 0.51% higher at 18,724, indicating a positive start for the Indian market.
Energy
Crude oil prices rallied after Saudi Arabia decided to cut production by another 1 million barrels per day from July.
Brent crude futures gained 2% to $77.64 a barrel. It earlier hit a session-high of $78.73 a barrel. US West Texas Intermediate crude rose 2% to $73.15 a barrel, after hitting an intraday high of $75.06 a barrel.
Gold price today
Gold prices fell on a strong dollar after the US payrolls report, offsetting support from the prospects that the Federal Reserve would pause its rate hikes this month.
Spot gold eased 0.1% to $1,945.66 per ounce, while US gold futures declined 0.3% to $1,963.10.
Currencies
The US dollar gained 0.5% on Friday and stayed elevated at 104.16 against its peers early on Monday. The greenback jumped 0.8% on Japanese yen to 139.94 while the euro eased 0.5% to $1.0706.
The Australian dollar was an outperformer against a strong greenback, up 0.5% to $0.6605 ahead of the Reserve Bank of Australia’s policy decision.
Bond Yields
Yields on US two-year Treasuries surged 16.2 basis points on Friday to 4.503% and ten-years rose 8 bps to 3.6903%.
(With inputs from Reuters)
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