5 things that changed for market overnight: Gift Nifty, Jerome Powell’s speech to global market cues for Sensex today

Asian markets traded lower, while US stocks ended in the red on Thursday as investors sentiment turned cautious.

On Thursday, the Indian benchmark equity indices, Sensex and Nifty, closed lower on profit booking in shares of select heavyweights.

“Domestic equities pared some gains amid profit booking after 3 days of positive close. All eyes would be on the outcome of the Jackson Hole meeting, which would provide some direction on interest rates going forward. Nifty in the meantime is expected to remain in a narrow range with some stock-specific action in the broader market,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

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Here are key global cues for Sensex today:

Asian Markets

Asian markets declined on Friday as investors remained cautious ahead of the central bankers’ comments at the Jackson Hole meeting, including that by US Federal Reserve chair Jerome Powell.

Japan’s Nikkei 225 plunged 1.69% and the Topix fell 0.9%. South Korea’s Kospi declined 1.04% and the Kosdaq dropped 0.8%

Hong Kong’s Hang Seng index futures were trading lower at 18,053 as compared to the HSI’s close of 18,212.17.

Australia’s S&P/ASX 200 fell 1.19%.

Gift Nifty was trading at 19,322 as compared to Nifty futures’ previous close of 19,390, indicating a negative start for the Indian benchmark indices.

Wall Street

US stock indices ended over a percent lower on Thursday amid cautiousness ahead of Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, Wyoming, on Friday.

The Dow Jones Industrial Average fell 373.56 points, or 1.08%, to 34,099.42, while the S&P 500 declined 59.7 points, or 1.35%, to 4,376.31. The Nasdaq Composite ended 257.06 points, or 1.87%, lower at 13,463.97.

Among stocks, Nvidia share price ended marginally higher after hitting a record high intraday. The stock surged as high as $502.66 during the session. Nvidia shares are now 223% up year-to-date.

Marvell Technology and Advanced Micro Devices Inc dropped nearly 7%, while Intel declined 4.1%.

Walt Disney shares fell 3.9% to end at their lowest level in nearly nine years.

Dollar Tree share price fell 12.9% after the company forecast annual profit largely below estimates.

Also Read: Global markets update: US stocks slump over 1% ahead of Powell’s speech at Jackson Hole, Nvidia rises

Disney ends at 9-year low

Walt Disney share price declined 3.9% to close at $82.47, its lowest level in nearly nine years, or since October 16, 2014. Investors expect Disney shares to drop further in the next few months.

Disney shareholders are scrutinizing the company’s turnaround plan after chief Bob Iger earlier this month promised a mix of price hikes across its streaming properties, more ads and cost cuts to lift the business, Reuters reported.

In the company’s earnings report on August 9, Iger acknowledged the entertainment company faces a “challenging environment” in the near-term. Disney share price has dropped over 5% since then.

Tokyo Inflation

Core inflation in Japan’s capital slowed in August for the second straight month but remained well above the central bank’s 2% target, data showed on Friday. The Tokyo core consumer price index (CPI) rose 2.8% in August from a year earlier.

It slowed from a 3.0% rise in July and exceeded the Bank of Japan’s 2% target for the 15th straight month.

Crude oil headed for second consecutive weekly fall

Crude oil prices fell slightly and were on track for a second consecutive week of decline as weak manufacturing activity hurt the global demand outlook. A stronger dollar also weighed on the oil prices.

Brent crude fell 0.10%, to $83.28 a barrel, while US West Texas Intermediate crude eased 0.04%, to $79.02 a barrel. Crude prices are set to fall between 2%-3% for the week.

(With inputs from Reuters)

Updated: 25 Aug 2023, 07:05 AM IST