Global market: SGX Nifty to US dollar — key triggers for stock market today

Here we list out important global stock market triggers that may dictate stock market today:

US stock market

The US stock market’s four-day rally came to a halt as banks experienced a selloff. After the end of Tuesday deals, S&P 500 index went off 0.58 per cent, Dow Jones index corrected 0.59 per cent whereas tech heavy weight Nasdaq went down 0.52 per cent.

On reason for correction US stock market, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “Treasury prices climbed higher as softer data on job openings led to increased bets that the Federal Reserve may soon conclude its tightening campaign. A gauge of major financial institutions such as Wells Fargo & Co. and Citigroup Inc. dropped by 2 per cent. Regional lenders like First Republic Bank and Zions Bancorporation also slumped, declining by at least 4.8 per cent.”

Marc went on to add that in its annual letter to shareholders, JPMorgan Chase & Co.’s CEO Jamie Dimon warned that the effects of the recent US banking crisis, which caused market turbulence last month, will be felt for years.

According to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), vacancies at US employers decreased to the lowest level since May 2021. Yields on two-year Treasury notes fell by 14 basis points to approximately 3.8%. Swap contracts referencing Fed meeting dates lowered the odds of a quarter-point rate hike in May to just under 50 per cent, down from about 60 per cent.

US dollar rate

After speculation about US Fed concluding its interest rate tightening campaign, US dollar came under sell off pressure and Dollar Index came close to 101 levels again. In early morning deals on Wednesday, US Dollar Index was down 0.01 per cent to 101.245 levels.

On US dollar to INR (Indian National Rupee), Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, “We expect Indian Rupee to trade with a negative bias on a strong Dollar and surge in crude oil prices. This may impact global economic recovery. However, easing worries over the banking crisis in the US may support risk assets at lower levels. Traders may look out for ISM manufacturing PMI data from the US. Investors may remain cautious ahead of RBI’s monetary policy decision and US jobs market report later this week. USDINR spot price is expected to trade in a range of ₹81.60 to ₹82.80 in the near term.”

Crude oil price

In early morning session, WTI crude oil price remained steady and quoted above $80 per barrel on third day in a row. However, crude oil prices remained in a tight range as market digested a slew of weak US economic indicators.

Asian stock market today

During early morning deals, the Japanese Nikkei lost 1.34 per cent, Shanghai index added 0.49 per cent whereas South Korean KOSPI went up 0.25 per cent. Hong Kong’s Hang Seng is closed today.

In early morning deals, SGX Nifty is trading lower but the index has managed to sustain above 17,500 levels. SGX Nifty today opened lower and went on to hit intraday high of 17,578. However, profit-booking soon triggered and SGX Nifty made an intraday low of 17,511 levels.

“One should maintain buy on dips as the index is still looking strong on chart pattern and it has managed to sustain above 17,500 levels,” said Anuj Gupta, Vice President — Research at IIFL Securities.

US bond yield

In early morning session on Wednesday, US 10 years bond yield ascended 0.61 per cent to 3.357 levels whereas US 30 years bond yield appreciated 0.38 per cent to 3.608 levels.

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.