Global markets: SGX Nifty to US dollar — key factors for stock market today

Global market today: US stock market ended mixed on Wednesday as fear of recession due to bank crisis in US weight on the equity market. But, strong Meta earnings powered tech stocks that helped Nasdaq end in green. However, US dollar rate rebounded again from its one year lows and Dollar Index has been sustaining above crucial 101 levels for the last two sessions. SGX Nifty today opened lower that signals muted opening on Dalal Street today.

Here we list out key global market triggers that may dictate stock market today:

US stock market

Rising economic recession in the US due to bank crisis weight on the equity investors but strong Meta earnings helped tech heavy weight Nasdaq to end in green territory. However, Dow Jones and S&P 500 index finished lower.

"Most global equities fell on Wednesday, after softening US data and renewed banking sector concerns fanned fears of a recession and dampened risk appetite," said Deepak Jasani, Head of Retail Research at HDFC Securities.

US dollar rate

Despite retreat in the US dollar from its one year low for second time in last one month, Indian National Rupee (INR) managed to log 1.08 per cent rise in YTD time. In early morning deals, US dollar witnessed profit booking as Dollar Index lost 0.08 per cent to 101.125 levels.

Speaking on US dollar to INR, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, "We expect Rupee to appreciate on weakness in US Dollar as banking concerns raised expectations that Fed may go dovish in its upcoming FOMC. Concerns over economic slowdown in US may also put pressure on the greenback. However, selling pressure from foreign investors may cap sharp upside. We expect USDINR spot to trade in between 81.20 to 82.20 in the near term."

US earnings

Shares of Meta surged on Wednesday and powered bying in Nasdaq listed tech stocks as Facebook parent company reported $5.7 billion profit in January to March 2023 quarter. Meta managed to beat the market estimates on revenue of $28.6 billion in Q1CY23.

Speaking on the Meta earnings, Mark Zuckerberg, Founder & CEO at Meta said, "We had a good quarter and our community continues to grow."

Apart from Meta, Teladoc reported 11 per cent YoY jump in revenue to $629.24 million in January to March 2023 quarter, beating the market estimates of $618.23 million.

Edwards Lifesciences, KLA Corporation, Roku, eBay and O'Reilly also reported better than expected Q1CY23 earnings.

Asian stock market

Following weakness in global markets, especially in the US stock market, Asian stock market fell for fifth day in a row during early morning deals on Thursday on echo of recession fears in US. However, buying soon took place and most of the Asian stocks turned green after few minutes of Asian stock market's opening bell.

Japanese Nikkei shed 0.26 per cent, Shanghai index added 0.33 per cent, Hong Kong's Hang Seng added 0.10 per cent while South Korean KOSPI went up 0.13 per cent.

SGX Nifty today

Signaling muted opening on Dalal Street, SGX Nifty today opened lower at 17,794 and went on to hit intraday low of 17,775 levels. The index has been trading in a tight range of around 65 points that signals wait and watch status of the investors.

Crude oil price

Crude oil price drift higher during early morning session on Thursday. WTI crude oil price added 0.23 per cent and hit $74.47 per barrel whereas Brent crude oil price added 0.21 per cent and hit $77.94 per barrel in early morning deals on Thursday.

Gold rate today

Due to fall in US dollar rate, gold price today witnessed some upside movement in Asian stock markets. Gold price today went up 0.42 per cent in morning session and hit $1,998 per ounce levels.

US bond yield

In early morning session, US 10 years bond yield surged 0.32 per cent to 3.441 levels whereas US 30 years bond yield shot up 0.38 per cent to 3.703 levels.

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