Global market update: US stocks declined lower on Wednesday, witnessing some selling pressure and dropped for a second straight session after economic data highlighted persistent inflationary pressures and US Federal Reserve officials continued to sound hawkish. However, US dollar continued to remain 'buy on dip' asset for investors as Dollar Index added 0.12 per cent in early morning deals on Thursday. Crude oil prices tumbled 0.12 per cent to $77.60 per barrel levels in Thursday morning deals.
Here we list out key triggers from the global market news, which may dictate Indian stock market today:
US stock market
Wall Street ended lower on second day in a row on Wednesday on continuous US inflation pressure and hawkish US Fed officials. Dow Jones added 0.02 per cent whereas S&P 500 index lost 0.47 per cent during Wednesday deals. Tech heavy weight Nasdaq index corrected 0.66 per cent.
On why Wall Street tumbled on Wednesday, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, "The US stock markets witnessed downside pressure as investors are still struggling to ignore fears of more rates from the Federal Reserve."
US dollar rates
Despite dipping below 105 levels, US dollar continued to remain a 'buy on dip' asset for investors as US dollar rate has added 0.12 per cent in early morning session on Thursday. In early morning session, Dollar Index climbed to 104.465 levels, logging 0.12 per cent rise on Thursday.
SGX Nifty today opened lower at 17,477 and went on to hit intraday high of 17,530. However, profit booking soon triggered and the index came at 17,485, around 34 points lower from its yesterday's close.
Expecting sideways movement on SGX Nifty today, Anuj Gupta, Vice President — Research at IIFL Securities said, "We may witness sideways opening on Indian stock markets as SGX Nifty has opened lower. However, the way it surged in early deals, we may expect short covering leading to positive trend on the index. 17,350 is expected to remain immediate support for SGX Nifty today whereas immediate hurdle is placed at 17,580 and 17,700 levels."
Asian markets
In early morning session, Japanese Nikkei went off 0.30 per cent, Shanghai index lost 0.16 per cent, Hong Kong's Heng Seng crashed 1.47 per cent whereas South Korean KOSPI added 0.04 per cent.
US bond yield
The US 10-year bond yield reached 4% for the first time since November. In early morning session on Thursday, US 10-year bond yield climbed 0.40 per cent and hit 4.012 levels whereas US 30-year bond yield shot up 0.53 per cent to 3.974 levels.
Crude oil price
After trading positive in opening bell today, crude oil prices came under the sell off stress in early morning session. Crude oil price is currently 0.12 per cent down at $77.60 per barrel levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
