Global market today: US stock market snapped its winning streak after the US Fed flagged off recession risk in its FOMC meeting minutes on Wednesday. However, gold prices pop up after the US CPI data for March 2023 printed lower than market expectations. NSE Nifty's derivative index on Singapore exchange i.e. SGX Nifty today is trading sideways to positive in early morning deals that signals muted opening on Dalal Street.
Here we list out key global market triggers that may dictate Indian stock market today:
US stock market
Wall Street pared its early gains after the lower than expected US CPI data for March as US Fed flagged off inflation worries in its FOMC meeting minutes released on Wednesday evening. Dow Jones lost 0.11 per cent, S&P 500 index went down 0.41 per cent whereas Nasdaq corrected to the tune of 0.85 per cent on Wednesday.
US CPI data
US inflation cooled down as the US Consumer Price Index (CPI) data came lower than the market expectation. US Labour Department printed US CPI data for March 2023 at 5 per cent against the market expectation of 5.10 per cent.
US FOMC minutes
After ease in US CPI data, market was expecting ease off in US Fed's interest rate cycle. But, the US central bank flagged off inflation jitters on banking crisis in the US.
“Given their assessment of the potential economic effects of the recent banking-sector developments, the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years," US Fed's FOMC minutes summary read.
SGX Nifty today
Signaling muted to sideways opening on Dalal Street today, the NSE Nifty's derivative trading on Singapore Exchange (SGX) is trading in tight 100 points range. In early morning deals, SGX Nifty opened at 17,891 and went on to hit intraday high of 17,930 levels. However, profit booking soon triggered and the index hit intraday low of 17,820. The NSE Nifty's derivative on SGX is currently quoting lower from its Wednesday close of 17,879 levels.
Speaking on SGX Nifty today, Anuj Gupta, Vice President — Research at IIFL Securities said, "Profit booking in early morning deals can be attributed to weekly expiry but the index is looking strong on chart and any dip should be seen as buying opportunity." IIFL Securities expert maintained that there is significant spurt in volume and hence strong bounce back is expected at SGX Nifty from its support levels placed around 17,700 levels.
Asian stock market
In early morning session, Japanese Nikkei is up 0.09 per cent, Shanghai index is down 0.12 per cent, Hong Kong's Hang Seng corrected to the tune of 0.30 per cent while South Korean KOSPI added 0.14 per cent.
Gold rate today
After the lower than expected US CPI data, gold prices pop up but profit booking soon triggered as US Fed raised concerns over looming economic slowdown due to bank crisis in US. In early morning session in Asian stock markets, gold price has surged by over $4 per ounce at $2,017 levels.
Crude oil price today
WTI crude oil prices snapped two days rally in early morning session in Asian stock market as investors are worried about the US recession and lowering demand for crude oil. Brent crude fell 19 cents at $87.14 per barrel while US WTI (West Texas Intermediate) corrected 16 cents to $83.10 levels.
US bond yield
In early morning deals, US 10 year bond yield is down 0.29 per cent at 3.411 while US bond yield for 30 years is down 0.33 per cent at 3.643 levels.
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