SGX Nifty, US dollar to bond yield: Top triggers that may dictate global markets on Thursday — 16th Feb
3 min read . Updated: 16 Feb 2023, 08:13 AM IST
Premium- Gold prices witnessed sell off pressure after the release of strong retail sales data on Wednesday evening
Global market today: On account of strong retail sales data, Wall Street indices finished higher on Wednesday. Expecting further rate hike by the US Fed, treasury yield went up. However, US dollar eased after bouncing from Wednesday lows. US bond yield for 10-year and 30-years also eased in morning session on Thursday. Extending the rally for third straight session SGX Nifty today opened higher and gained further strength in early morning deals on Thursday.
Here we list out important global market triggers that you should know before the opening bell on Dalal Street:
US markets
After trading in tight range on Wednesday, US stocks finally managed to end higher. Dow Jones finished 0.11 per cent up, S&P 500 index surged 0.28 per cent while tech heavy Nasdaq climbed 0.92 per cent. Strong retail sales data released on Wednesday evening boosted the investor sentiment that helped US indices breach upper resistance on the intraday range.
On reason for rise in US stock market, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “US stocks closed higher and Treasuries slid as investors picked through another batch of solid economic data to find different takeaways, even as worries mounted that it would force a hawkish response from the Federal Reserve."
SGX Nifty
After ending above 18,000 levels on Wednesday, SGX Nifty today opened higher in early morning session and went on to make intraday high of 18,081 . Currently, SGX Nifty is quoting 18,073, which signals that SGX Nifty is sustaining above 18,000 mark.
Speaking on outlook for SGX Nifty today, Anuj Gupta, Vice President — Research at IIFL Securities said, "Immediate support for SGX Nifty has shifted towards 17,950 levels whereas its major support lies around 17,800 levels. SGX Nifty is facing hurdle at 18,250 whereas major hurdle is placed at 18,400 levels." Anuj Gupta said that SGX Nifty has formed higher top higher bottom on chart pattern, which signals positive bias. He advised stock market traders and investors to maintain buy on dips strategy as any dip would be a good buying opportunity SGX Nifty chart pattern is signaling bullish candlestick coupled with trendline breakout.
Asian markets
In early morning session today, Japanese Nikkei shot up 0.74 per cent, Hong Kong's Hang Seng surged around 1.10 per cent, Shanghai index gained 0.38 per cent whereas South Korean KOSPI skyrocketed 1.73 per cent.
Gold rates today
Gold prices witnessed sell off pressure after the release of strong retail sales data on Wednesday evening. Gold price in international spot market is currently quoting $1,840 per ounce. On MCX, gold future contract for April 2023 finished ₹634 per 10 gm lower at ₹56,116 levels.
Speaking on gold price outlook, market expert Anuj Gupta of IIFL Securities said, "Gold price has immediate support placed at $1,835 levels whereas it is facing resistance at $1,890 levels. On breaching $1,835 levels, the precious metal may go up to $1,810 levels whereas on MCX,, gold price has immediate support placed at ₹55,500 per 10 gm levels. On higher side, ₹56,700 and ₹57,100 are immediate hurdles that the yellow metal price is facing on MCX."
US dollar
The US Dollar firmed mid-week to a six-week high against a basket of currencies as measured by the DXY index. The index has penetrated a key 103.80 level on the charts amid risks of higher inflation for longer and the markets flipping the script of the Federal Reserve pivot narrative. The index maintains the erratic activity around 103.00 so far. The monthly high near 104.00 continues to cap the upside. At the time of writing, price trading at 103.754.
After rebounding from Wednesday lows, US dollar rates are undergoing profit booking. The US Dollar index today is 0.14 per cent down at 103.632.
Crude oil price
Energy was a drag on the broader market, falling 2%, driven by a slump in Devon Energy pressured by a slump in oil prices following a much larger than expected build in US weekly crude stockpiles.
US crude stockpiles rose by 16.3 million barrels last week to 471.4M barrels, well above expectations of 1.2M barrels.
US bond yield
In early morning session on Thursday, the US bond yield for 10 years is down0.26 per cent down at 3.797 whereas US bond yield for 30 years is 0.33 per cent down at 3.839.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.