Global market today: SGX Nifty, US stocks, other key triggers that may dominate Dalal Street on Wednesday

Asian stocks declined, following Wall Street, which slid Asian stocks declined, following Wall Street, which slod as US Federal Reserve’s chief signaled officials were ready to speed up the pace of tightening.

Factors that may drive market today -

Wall Street

US stocks plummeted with all three major indexes losing more than a per cent at the close on Tuesday after US Federal Reserve Chair Jerome Powell's prepared remarks. Powell confirmed that a recent spate of generally robust economic data, particularly in the labor market, along with stubbornly slow inflationary cool-down, increases the likelihood that the Fed will raise its policy rate more aggressively.

Asian market

Asian stocks declined Wednesday after hawkish rhetoric from Jerome Powell rattled risk sentiment and drove the dollar higher against all of its major peers. Shares were around 1% lower in South Korea and Australia, while eking out small gains in Japan.

US Federal Reserve

The Federal Reserve will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the "totality" of incoming information suggests tougher measures are needed to control inflation, Fed Chair Jerome Powell told US lawmakers on Tuesday.

"The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," the US central bank chief said in his semi-annual testimony before the Senate Banking Committee.

SGX Nifty

Meanwhile, for Wednesday, Indian indices may witness a lower start as SGX Nifty, Singapore Nifty that is the Indian Nifty traded in the Singapore Stock Exchange, indicates a gap-down opening for the Indian stock market today.

Oil

Oil extended losses after Federal Reserve Chair Jerome Powell signaled the central bank is likely to boost interest rates higher and potentially faster than previously anticipated, raising concerns over a drag on demand.

West Texas Intermediate futures slipped toward $77 a barrel after closing 3.6% lower on Tuesday, the biggest one-day drop since early January. The remarks, made during a testimony before Congress, opened the door to the Fed lifting interest rates by half a percentage point at the next meeting this month.

(With inputs from agencies)