Global market: SGX Nifty, CPI inflation to US Fed, key triggers for Indian stock market

Asian markets traded on a mixed note on Monday as investors remained cautious ahead of interest rate decisions from a slew of major global central banks this week including the US Federal Reserve, European Central Bank and Bank of Japan.

The US Federal Reserve is expected to keep interest rates unchanged in its June 13-14 meeting, according to economists polled by Reuters.

Japan’s wholesale inflation slowed for a fifth consecutive month in May, coming at 5.1% YoY, in line with the Bank of Japan’s estimates.

On the domestic front, investors will keep an eye on the retail inflation data, measured in consumer price index (CPI), and IIP data to be released later today, while WPI inflation during the week. Apart from these, the updates on progress of the monsoon may also drive the Indian stock market.

Also Read: Stock market triggers: US Fed policy, IIP, CPI, among factors that may drive Sensex, Nifty this week

Asian Markets

Japan’s Nikkei 225 gained 0.42% to hover near 33-year highs at 32,400, while the Topix rose 0.48%.

South Korea’s Kospi rallied 0.32% and the Kosdaq rose by 0.2%. Hong Kong’s Hang Seng index futures were lower by around 50 points at 19,340. 

Markets in Australia are closed for a holiday.

SGX Nifty was trading 74.5 points, or 0.40%, higher at 18,684.5, indicating a positive start for the Indian indices. 

US Stocks

All three indices on Wall Street ended higher last week with the S&P 500 entering into a bull territory.

The S&P 500 gained 0.11% to 4,298.86, while the  Dow Jones Industrial Average ended 0.13% higher at 33,876.78. The Nasdaq Composite rose 0.16% to 13,259,14.

Bullion

Gold prices traded lower as the dollar held firm and investors positioned for a series of major central bank policy meetings this week, with a likely pause in interest rate hikes by the US Federal Reserve, Reuters reported.

Spot gold eased 0.1% to $1,957.92 per ounce, while US gold futures declined 0.2% to $1,972.60.

Also Read: Five key charts to watch in global commodity markets this week

Energy

Crude oil prices traded lower as investors remained cautious ahead of the US Fed’s policy decision, while concerns about China’s demand and rising Russian crude supply weighed on the market.

Brent crude futures fell 0.4% to $74.50 a barrel, while US West Texas Intermediate (WTI) crude declined 0.3% to $69.93 a barrel.

Currrencies

The dollar was steady but was still near multi-week lows against some of its major peers. The US dollar index clocked a loss of nearly 0.5% last week, and was last marginally higher at 103.58.

The US currency traded near a one-month low at $1.25805 against the British pound.

The euro slipped 0.02% to $1.0744, while the Japanese yen steadied at 139.35 per US dollar.

(With inpits from Reuters)