Asian markets were mixed while US stocks fell last week as improving US employment data raised hopes of an interest rate cut by the Federal Reserve.
Traders currently see a 56% chance of a rate cut in September, according to CME’s FedWatch tool, Reuters reported.
Meanwhile, Indian stock markets are also likely to react to the formation of a new government after Prime Minister Narendra Modi and his 71 cabinet ministers were sworn in and signed non-disclosure agreements on Sunday.
Indian stock market indices on Friday ended at fresh closing highs, extending gains for the third consecutive trading day, after the Reserve Bank of India (RBI) raised its FY25 GDP forecast and kept repo rate and policy stance unchanged while maintaining its inflation target.
The Sensex index rose 1,618.85 points or 2.16 percent to close at 76,693.36, while the Nifty 50 index rose 468.75 points or 2.05 percent to close at 23,290.15.
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“Based on recent macro data, there are renewed hopes that the US Fed may cut interest rates at its September meeting. This week, attention will be focused on the allocation of key cabinet portfolios such as finance, defence, roads, energy, commerce and railways. Markets will remain volatile and the uptrend is likely to continue,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.
This week, stock market investors will be focusing on global and domestic triggers such as US Federal Reserve policy, Bank of Japan interest rate decision, US inflation data, Indian retail inflation data and key policy decisions of the BJP-led coalition government.
Please read this: Indian stock market: Investors look to inflation data, Modi 3.0 policy decision, US Fed meeting for fresh clues
Here are some key indices of domestic and global markets on Sensex today:
Asian Market
Asian markets were mixed on Monday ahead of the release of key economic data from the region.
Japan’s Nikkei rose 0.19% and the TOPIX added 0.38%. South Korea’s KOSPI fell 1% and the KOSDAQ lost 0.5%. Stock markets in mainland China, Hong Kong, Taiwan and Australia were closed today.
Give the gift of Nifty today
GIFT Nifty is trading around 23,290 levels, down about 40 points from the previous day’s closing price of Nifty futures, indicating a weak start for Indian equity market indices.
Read also: To buy or sell: Sumeet Bagadia recommends these 3 stocks for Monday, June 10
Wall Street
U.S. stocks closed slightly lower in choppy trading on Friday as improving U.S. employment data stoked concerns that the Federal Reserve may take its time to cut interest rates.
The Dow Jones Industrial Average fell 87.18 points, or 0.22%, to 38,798.99, while the S&P 500 lost 5.97 points, or 0.11%, to 5,346.99. The Nasdaq Composite Index lost 39.99 points, or 0.23%, to close at 17,133.13.
For the week, the S&P 500 rose 1.32%, the Nasdaq gained 2.38% and the Dow added 0.29%.
On the stock market, GameStop shares plummeted 39%, AMC Entertainment shares fell 15.2%, and Koss Corporation shares plummeted 17.4%.
Nvidia shares fell, dropping its valuation back below $3 trillion. Lyft shares rose 0.6.
Read also: What’s happening on Wall Street this week: Focus on Federal Reserve policy decision and inflation data
U.S. Nonfarm Payrolls
The Labor Department’s Bureau of Labor Statistics said U.S. nonfarm payrolls added 272,000 jobs last month. The revised figure showed that payrolls for March and April combined were 15,000 fewer than previously reported. Economists surveyed by Reuters had expected payrolls to rise by 185,000. The May payroll increase was faster than the monthly average of 232,000 over the past year.
Modi 3.0 is sworn in
Prime Minister Narendra Modi was sworn in as Prime Minister for a third consecutive term on Sunday evening along with 71 other ministers. In the new coalition government, 30 ministers, five ministers of state (independent charge) and 36 ministers of state were administered the oath of office and security by President Drupadi Murmu.
Please read this: 71 ministers, including Amit Shah, JP Nadda and Shivraj Singh Chouhan, were sworn in. See the full list here
Japan’s GDP
Japan’s economy contracted less in the first quarter than initially reported, according to government data. Japan’s first-quarter GDP was revised down to a 1.8% decline from a year earlier, compared with economists’ median forecast of a 1.9% decline and a preliminary estimate of a 2.0% decline. The revised figure was a price-adjusted decline of 0.5% from the previous quarter, unchanged from the figure initially released last month, Reuters reported.
Oil prices
Oil prices were stable after a weekly decline following OPEC’s decision to start restoring supplies. Brent crude fell 0.04% to $79.59 a barrel after falling 2.5% last week, while West Texas Intermediate was down 0.05% to $75.49.
(Quoted from Reuters)
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Published date: June 10, 2024, 7:20 AM
