Global markets: SGX Nifty to oil price — key triggers that may impact stock market today
3 min read 27 Mar 2023, 08:07 AM ISTSGX Nifty today is near 100 points higher from its Friday close, which signals positive opening on Dalal Street today
PremiumGlobal market update: The US stock edged higher on Friday, amid assurances from authorities about financial stability and growing speculation that policymakers will have to stop raising rates to prevent a recession. However, market is cautious about the developments in Middle East as US air strike on Syria last weekend is expected to dictate global markets, including Dalal Street. In early morning deals on Monday, US dollar rates are sideways as Dollar Index is trading tepid. However, SGX Nifty today has surged over 100 points today as crude oil prices have slipped in early morning session, signaling ease in Middle East tension post-US air strike in Syria.
Here we list out important triggers that may dictate stock market today:
US stock market
On Wall Street, key benchmark indices closed higher on Friday. S&P 500 index surged 0.56 per cent, Dow Jones went up 0.41 per cent while tech heavy weight Nasdaq ascended to the tune of 0.31 per cent.
On why US stock market surged on weekend, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, "Top US regulators said after a meeting Friday that while some banks are coming under stress, the overall financial system is still sound. Global authorities continued trying to instill calm in financial markets following the recent failure of some US regional lenders and the near-collapse of banking giant Credit Suisse Group AG before its government-brokered takeover by rival UBS Group AG."
Marc Despallieres further added that , market participants abandoned wagers that the Fed will raise interest rates in May and added to bets that its next shift will be a rate cut as early as June — even as Chair Jerome Powell said that cuts are not his “base case."
Crude oil price in focus
After US air strike in Syria last weekend, Indian stock market witnessed heavy sell off after paring the early morning losses. So, any rise in crude oil price would have been an indicator of the escalating geopolitical tension in Middle East. But, in morning deals, crude oil prices are down by around 0.10 per cent and WTI crude oil price is quoting little above $69 per barrel.
"Ease in crude oil prices is mainly due to no further escalation in Middle East tension after the US air strike in Syria. This may turn out a big puller for the Indian stocks and other emerging markets," said Avinash Gorakshkar, Head of Research at Profitmart Securities.
SGX Nifty today
Signaling strong opening on Dalal Street, SGX Nifty today opened higher at 17,037 levels and went on to climb the intraday peak of 17,041. However, profit booking triggered soon and the index hit intraday low of 17,016.
Asian stock market today
In morning deals on Monday, the Japanese Nikkei added 0.34 per cent, Shanghai index dipped 0.60 per cent, Hong Kong's Hang Seng nosedived 1.80 per cent whereas South Korean KOSPI went off 0.39 per cent.
US dollar rate
In morning session on Monday, US dollar is trading sideways but Dollar Index is still above 102 levels. Dollar Index is 0.04 per cent down at 102.720 during early morning deals.
Speaking on US dollar to INR (Indian National Rupee), Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, "We expect Indian Rupee to trade with a negative bias on risk aversion in global markets and a positive Dollar. Selling pressure from FIIs and month end Dollar demand from importers may also weigh on Rupee. However, easing crude oil prices may support Rupee at lower levels. Traders may remain cautious ahead of durable goods orders and PMI data from US. USDINR spot price is expected to trade in a range of ₹81.80 to ₹82.80."
US bond yield
In early morning session on Monday, US 10 year bond yield is 0.06 per cent up at 3.380 while US 30 year bond yield is 0.01 per cent down at 3.644.
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