SGX Nifty to US inflation: Top triggers that may dictate global markets today

Here we list out major global market triggers that you should know before opening bell on Dalal Street:

US inflation data

The US Consumer Price Index (CPI) surged 0.50 per cent, which translated into year-on-year (YoY) gain of 6.40 per cent in January 2023. The US inflation data released on Tuesday was disappointing for the US economy as the inflation data was higher than market estimates.

US markets

After announcement of higher than expected US data, US stocks fell sharply as Dow Jones shed 0.46 per cent while S7P 500 index went off 0.03 per cent after a choppy session on Tuesday. However, tech heavyweight Nasdaq ended higher by 0.57 per cent.

“This isn’t a scary number that some of the market feared,” said Lindsay Rosner, multisector portfolio manager at PGIM Fixed Income following sharp fall in US indices after announcement of US inflation data.

European markets

European stock cheered the disappointing US inflation data and climbed to one year highs on Tuesday. After opening flat on Tuesday deals, pan-European index Stoxx 600 went up more than 9 per cent and hit one year highs. Telecom stocks led from the front while shares of Coca-Cola Hellenic Bottling Company was among the top gainers with more than 5 per cent intraday rise. However, German engineering company’s stock ThyssenKrupp fell more than 10 per cent.

SGX Nifty

SGX Nifty today opened flat in early morning deals. SGX Nifty today opened at 17,948 and went on to make intraday high of 17,995. However, profit booking soon triggered and the index fell in the negative zone. SGX Nifty is currently quoting 17,885, 42points below its Tuesday close.

“One should maintain buy on dips strategy as technical structure looks positive on chart pattern after forming higher top higher bottom on chart pattern. Immediate support for SGX Nifty today is placed at 17,850 while 17,770 is major support for the index. Similarly, immediate hurdle for SGX Nifty today is placed at 18,100 while 18,250 is major hurdle for the index,” said Anuj Gupta, Vice President — Research at IIFL Securities.

Asian markets

In early morning deals on Wednesday, Japanese Nikkei fell 0.12 per cent, Shanghai index went off 0.29 per cent, Hang Seng crashed 1.71 per cent while KOSPI dropped to the tune of one per cent.

US dollar rates

After higher than expected US CPI data, greenback price fell 0.02 per cent to 103.142.

US bond yield

US bond yield for 10 years is down 0.52 per cent at 3.742 while US bond yield for 30 years is 0.75 per cent at 3.820.

Gold rates today

After dropping to $1,843 levels on Tuesday session, gold prices bounced back strongly after the disappointing US inflation data. Currently, gold price today in international market is quoting $1,859 per ounce, adding intraday gain of around 0.25 per cent.

“The bearish trend should persist. In conclusion, we think the market is in bearish mode as both indicator show bearish potential. Besides, the price is edging lower and keeps forming lower low technical pattern, which favors bearish side. For the downtrend scenario, the next support level is at $1,830. If the price close below the level, it may trigger some technical selling and drag the price deeper,” said Marc Despallieres, Chief Strategy and Trading Officer at Vantage.

Crude oil price

WTI oil bears seeks a break of $79.00 to open the flood gates. US crude prices are adding to earlier declines, falling after the US consumer price index data and during the Wall Street cash open. As time of writing, US oil price trading at 78.837.

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.