Sensex Today Live | Share Market Updates: Asian stocks declined on Thursday, in step with overnight losses on the Wall Street, as minutes from the Federal Reserve latest meeting indicated interest rates will remain elevated for longer.
Attention will now turn to upcoming US jobs data on Friday after minutes from the Fed’s December meeting suggested rates could remain at restrictive levels “for some time.” Swaps traders have been reining in their bets on rate cuts after factoring in a full quarter point cut to the benchmark rate by the March meeting.
In Asia, investors will be parsing China’s December Caixin services PMI for signs of resilience in the world’s second largest economy, with some positioning for the country’s equities to rebound.
China’s services activity expanded at the fastest pace in five months thanks to a solid rise in new business, a private-sector survey showed on Thursday, lifting the degree of optimism in the sector to a three-month high.
The Caixin/S&P Global services purchasing managers’ index (PMI) rose to 52.9 in December from November’s 51.5, above the 50-mark separating growth from contraction and posting the highest reading since July.
In contrast to equities, Treasuries were little changed in Asia, stemming declines from one of the worst opening days to a year on record. The 10-year Treasury yield inched one basis point lower to 3.9% Wednesday as the Fed minutes showed the possibility of slowing the pace of quantitative tightening.
US manufacturing data on Wednesday showed activity remained in contraction. Separate figures showed the number of job openings fell slightly in November from the prior month’s revised number in a sign of labor market softening.
Elsewhere, geopolitics remained in focus. Iran said attacks that killed almost 100 people in the country were carried out to punish its stance against Israel, intensifying tensions in the region.
The tensions supported crude prices, which were also buoyed by supply disruptions in Libya and a statement from OPEC pledging to stabilize prices. West Texas Intermediate and Brent prices rose 3.30% Wednesday. Elsewhere, a slump in Bitcoin saw the cryptocurrency erase almost all gains it had made so far this year.
04 Jan 2024, 07:44:04 AM IST
Sensex Today Live: GIFT Nifty futures marginally higher
GIFT Nifty futures traded 33 points higher at 21,613 in early deals, indicating a marginally positive start for the Indian benchmark.
04 Jan 2024, 07:40:48 AM IST
Sensex Today Live: Asian equities decline tracking US peers; Fed minutes disappoint
Stocks in Asia fell following a fall in US stocks after Federal Reserve meeting minutes indicated interest rates will remain elevated for longer.
A gauge for regional shares fell for a third straight session as Japanese benchmarks declined in their first trading day of the new year after a holiday break. The benchmark Nikkei 225 tumbled 2.26% at open, while the Topix also slid 1.25% as Japan kicks off its first day of trade in 2024.
Equities in Australia and South Korea also slipped while contracts for Hong Kong stocks edged higher.
US share futures were little changed during Asian trading after the S&P 500 ended Wednesday 0.8% lower, extending a run of daily declines that began on the last trading day of 2023.
Overnight, US stocks fell again as Wall Street’s slow start to the year stretched into a second day.
The S&P 500 lost 38.02 points to 4,704.81, though it remains within 2% of its record set exactly two years ago. The Dow Jones Industrial Average dropped 284.85 points, from its own record to 37,430.19. The Nasdaq composite led the market lower with a drop of 173.73, or 1.2%, to 14,592.21.
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!
