Sensex Today | Share Market Live Updates : Shares in Asia fell on Wednesday after solid economic readings and higher commodity prices spurred speculation that major central banks will keep interest rates higher for longer.
Benchmarks in Australia, South Korea and Japan fell, while Hong Kong stock futures traded flat. U.S. equity contracts declined after the S&P 500 fell 0.7% and the Nasdaq 100 fell 0.9% in Tuesday trading.
Pressure on US equities followed better-than-estimated data on US jobs and manufacturing orders, which added to skepticism about the pace of Federal Reserve easing. Traders now project fewer rates in 2024 than the central bank itself.
Treasuries steadied in Asian trade after further selling pushed yields higher on Tuesday, as the 10-year yield touched the highest level since November. Australian and New Zealand yields also climbed in early Asian trade.
“Stock bulls may find it hard to justify buying stocks at these high levels when yields are rising,” said Fawad Razaqzada at City Index and Forex.com. “Rising oil prices pose an additional risk to the inflation outlook. Additionally, many jobs reports are expected throughout the week. Trading could be volatile.”
The dollar index was little changed. The yen was also flat against the greenback at around 151 per dollar, remaining around the weakest level of the year – keeping alive the possibility of official intervention to support the currency. Traders were also monitoring early reports of an earthquake in the region on Wednesday.
Elsewhere, oil extended a rally after an industry report showed a drop in US crude inventories, ahead of an OPEC meeting at which the group is expected to affirm current supplies.
In Asia, data for release includes composite PMIs for Japan and China, Hong Kong retail sales and New Zealand house prices.
Following warmer-than-estimated data in various corners of the world, the global version of Citigroup’s Economic Surprise Index – which measures the difference between actual releases and analyst expectations – is near the highest in a year. Over the past week, the two largest economies – the United States and China – showed strong manufacturing figures.
As traders awaited remarks from Fed Chairman Jerome Powell on Wednesday, they weighed comments from two officials who vote on monetary policy decisions this year. San Francisco Fed President Mary Daly and her Cleveland counterpart Loretta Mester said they still expect the central bank to cut rates three times in 2024 — though they are in no rush to start lowering borrowing costs.
Gold has been steady for a rally over the past six sessions, while Bitcoin is little changed around $65,500.
Sensex Today Live: Eight key things that changed for the market overnight – Gift Nifty, Tesla sales fall on rising oil prices
Sensex Today Live : On Wednesday, the Indian stock market is projected to start on a lower note, influenced by negative indicators from global markets and rising crude prices. Asian markets are trading in the red, and US stocks have experienced a major drop overnight as investors consider the possibility that the US Federal Reserve has delayed interest rate cuts.
The increase in US treasury and crude oil prices could potentially affect investor sentiment negatively. On Tuesday, the Indian stock market indices ended their three-day winning streak due to profit booking in certain private banks and auto stocks, influenced by weak global signals.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, commented, “We are witnessing a resurgence of optimism in the broader market, particularly in mid- and small-cap stocks after a significant correction in the last few months. There is a large amount of capital waiting. , ready to be invested in mid-sized companies, driven by easing valuations and the prospect of robust economic growth in the future.” (Read the full story here.)
Sensex Today Live : Weak global peers, Gift Nifty indicate slow start for Indian markets
Sensex Today Live : Indian stock markets are likely to open on a negative note, tracking falls in global peers, as markets digested the risk of a longer wait for rates from the US Federal Reserve.
The Gift Nifty, at 22,455 at 7:56 am, was below Tuesday’s Nifty 50 close of 22,453.30, indicating a slow start for Indian benchmarks.
Asian stocks trailed Wall Street lower on Wednesday as US yields held near four-month highs, while a powerful earthquake in the region raised concerns about potential disruptions to the vital chip-making industry.
Markets are also weighing the risk of slower rates ahead of US data and an appearance by the world’s most powerful central banker later in the day. Oil extended its ascent, while gold prices hit another record high.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%. Japan’s Nikkei fell 1%, after a 20% blockbuster rally in the first quarter.
Taiwan’s shares slipped 0.8% after a powerful earthquake with a magnitude of 7.2 shook Taipei, the capital, triggering a tsunami warning for the islands of southern Japan and the Philippines.
China’s blue chips fell 0.3% while Hong Kong’s Hang Seng index fell 0.6%, even as a private survey showed expansion in the service industry accelerated in March.
On Wall Street, a recent run of solid US economic data – including an unexpected expansion in the manufacturing sector and the slow slowdown in the labor market – has raised doubts about the amount of Fed tapering likely this year and next. The three main Wall Street indexes fell around 0.7%-1%.
Long-term Treasury yields climbed to multi-month highs overnight before some of the moves. The benchmark 10-year yield was last at 4.3471% on Wednesday, after hitting a four-month high of 4.405% overnight.
Investors are now awaiting data on eurozone inflation, which could surprise the downside after German inflation fell more than expected. In the US, a private payrolls report and a service sector survey are the key data risks, along with a speech by Fed Chairman Jerome Powell on the economic outlook.
Oil gained for a fourth straight day as rising geopolitical tensions fueled concerns about tighter supplies ahead of an OPEC meeting where the group is unlikely to change production policy. Brent eased 0.2% to $87.18 per barrel, while US crude lost 0.3% to $83.21 per barrel.
Gold prices extended their record rally on Wednesday. Spot gold hit an all-time high of $2,288.09 an ounce earlier in the session before running into profit and was last flat at $2,277.99.
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