Global market: US passes debt ceiling bill, SGX Nifty down - key triggers that may dictate Indian market today — June 1
- In the US, the House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with majority support from both Democrats and Republicans, avoiding a catastrophic default.
Asian markets were trading mixed on Thursday as investors remained cautious amid the passage of US debt ceiling bill and the release of manufacturing data of several Asian countries, including China.
In the US, the House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with majority support from both Democrats and Republicans, avoiding a catastrophic default, Reuters reported.
The Republican-controlled House voted 314-117 to send the legislation to the Senate, which must enact the measure and get it to President Joe Biden's desk.
In Japan, factory activity expanded in May as the final au Jibun Bank Japan manufacturing purchasing managers' index (PMI) stood at 50.6, led by increases in output and new orders, Reuters reported.
However, South Korea's factory activity shrank for an 11th consecutive month in May. The S&P Global's seasonally adjusted PMI for South Korean manufacturers stood at 48.4 last month as a slowing global economy hit output and orders.
Asian Markets
Japan’s Nikkei 225 rose 0.56% to cross the 31,000 mark, while the Topix gained 0.2%.
South Korea’s Kospi and Kosdaq rose marginally, while Hong Kong’s Hang Seng index futures were trading lower.
Meanwhile, SGX Nifty was trading 71 points, or 0.38%, lower at 18,593.
US Markets
US stocks ended lower overnight as investors awaited a crucial vote on the debt ceiling deal in Congress.
The S&P 500 closed 25.69 points, or 0.61%, lower at 4,179.83, while the Dow Jones Industrial Average fell 134.51 points, or 0.41%, to 32,908.27. The Nasdaq Composite dropped 82.14 points, or 0.63%, to end at 12,935.29.
European Markets
European stocks declined on Wednesday amid concerns over global slowdown. The pan-European STOXX 600 index ended 1.1% lower, after hitting its lowest level since March 30.
Britain’s FTSE 100 declined 1% to 7,446.14, while Germany’s DAX lost 1.5% at 15,664.02. France CAC 40 shed 1.5% to 7,098.70.
Currencies
The US dollar retreated from a two-week high against its major peers amid trimmed bets that the Federal Reserve will raise interest rates this month, though the looming debt ceiling deadline gave safe haven support to the greenback.
The US dollar index rose 0.06% to 104.21. Euro rose 0.04% against the greenback to $1.06895, while Sterling slipped 0.01% to $1.2440.
Energy
Crude oil prices fell for the third straight session amid fears of oversupply after a large build was seen in US crude stocks last week. Signs of weaker demand from China also dragged oil prices lower.
Brent crude futures for August delivery declined 0.6% to $72.20 a barrel, while US West Texas Intermediate crude (WTI) fell 0.6% to $67.70 a barrel.
Gold prices today
Gold prices rose in early Asian trade led by a softer dollar, trading in a range as traders focused on the US debt ceiling vote.
Spot gold rose 0.2% to $1,965.61 per ounce, while US gold futures inched 0.2% higher at $1,965.20.
(With inputs from Reuters)
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