Gift Nifty, Asian stocks to US Fed meeting minutes – key triggers for the Indian stock market
The Fed minutes showed that the central bank was split on pausing interest rate hikes in June and sees more rate hikes at a slower pace going ahead.
Asian markets traded lower on Thursday following overnight losses in the US stocks after hawkish signals from the Federal Reserve’s latest meeting minutes.
The minutes showed that the central bank was split on pausing interest rate hikes in June and sees more rate hikes at a slower pace going ahead.
At the June 13-14 meeting, the Federal Open Market Committee (FOMC)’s decision to hold interest rate after 10 consecutive increases was to buy time and assess whether further rate hikes would be needed, the minutes showed
On the domestic front, the Indian equity indices ended flat on Wednesday after hitting record highs for the last four consecutive sessions. After showing high volatility at high levels, Nifty continued to show consolidation movement on Wednesday and closed the day higher by 09 points.
“Global worries along with moderation in Service PMI data briefly impacted the domestic market’s rally. Heightened trade tensions between the US and China, coupled with uncertainties surrounding the upcoming release of FOMC minutes, tested the risk appetite of global investors,” said Vinod Nair, Head of Research at Geojit Financial Services.
However, the market’s last-minute broad based recovery serves as a reaffirmation of investors’ confidence in the Indian economy, Nair added.
Asian Markets
Japan’s Nikkei 225 slumped 1% and the Topix fell 0.7%. South Korea’s Kospi declined 0.8% while the Kosdaq dropped 1.01%.
Hong Kong’s Hang Seng index futures were trading over 150 points lower at 18,956.
Australia’s S&P/ASX 200 shed 0.72%.
Meanwhile, the Gift Nifty was trading 39 points, or 0.20%, lower at 19,473.00, indicating a lower start for the Indian indices.
Wall Street
US stocks ended lower on Wednesday on weak economic data and as investors digested minutes from the Federal Reserve’s June meeting.
The S&P 500 fell 8.94 points, or 0.20%, to 4,446.65, while the tech-heavy Nasdaq Composite lost 25.12 points, or 0.18%, to close at 13,791.65. The Dow Jones Industrial Average shed 129.64 points, or 0.38%, to 34,288.83.
Chip stocks declined after China said it would control exports of some metals widely used in the semiconductor industry. The Philadelphia SE Semiconductor Index dropped 2.2%, while Intel shares tanked 3.3% and Texas Instruments plunged 1.8%.
Shares of Meta Platforms rose 2.9% ahead of the expected release of the company’s Twitter-rival app, Threads, on Thursday.
Europe
European stocks declined on Wednesday as Eurozone economic activity fell in June. The EURO STOXX 50 index closed 0.9% lower, its worst session since end May. The STOXX 600 dropped 0.7%.
Britain’s FTSE 100 fell 1% to 7,442.10, while Germany’s DAX lost 0.6% to 15,937.58. France’s CAC 40 shed 0.8% to close at 7,310.81.
Energy
Crude oil prices were steady as the prospect of tighter supply with output cuts from Saudi Arabia and Russia and a bigger-than-expected drop in US crude stocks were offset by worries over a sluggish demand recovery in China, Reuters reported.
Brent futures eased 0.07% to $76.60 a barrel, while US West Texas Intermediate (WTI) crude rose 0.13% to $71.88 a barrel.
Gold rate today
Gold prices were flat as investors digested minutes from the Federal Reserve’s latest meeting.
Spot gold was unchanged at $1,917.09 per ounce, while US gold futures fell 0.2% to $1,923.60.
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