6 things that changed for the stock market overnight – Gift Nifty, fall in oil prices to Biden-Xi meet
Asian markets traded mixed while US stocks ended higher overnight after fresh inflation data reinforced investor hopes that the US Federal Reserve is done raising interest rates.
The domestic equity benchmark indices ended sharply higher on Wednesday led by across the board buying.
The Sensex jumped 742.06 points, or 1.14%, to end at 65,675.93, while the Nifty 50 settled 231.90 points, or 1.19%, higher at 19,675.45.
“Rally was seen in global markets after weak US inflation data raised hopes that the interest rate-hiking cycle has reached its peak. Additionally, news of fresh stimulus in China and sharp fall in UK’s inflation boosted the sentiments. We expect the market to maintain its momentum, driven by positive domestic data, cooling off US bond yields and dollar index,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded mixed on Thursday following overnight gains on Wall Street and as investors watched for discussions between US President Joe Biden and Chinese President Xi Jinping.
Japan’s Nikkei 225 was flat, while the Topix rose 0.16%.
Hong Kong’s Hang Seng index futures were higher at 18,379 compared with the HSI’s close of 18,079.
Australia’s S&P/ASX 200 fell 0.19%.
Gift Nifty was trading around 19,753 level as against Nifty futures previous close of 19,723, indicating a positive start for the Indian benchmark indices.
Wall Street
US stock market indices extended rally to end higher on Wednesday as fresh inflation data reinforced investor hopes that the US Federal Reserve is done raising interest rates.
The Dow Jones Industrial Average gained 163.51 points, or 0.47%, to 34,991.21, while the S&P 500 rose 7.18 points, or 0.16%, to 4,502.88. The Nasdaq Composite ended 9.46 points, or 0.07%, higher at 14,103.84.
Retailer Target shares surged 17.8% after the company forecast a fourth-quarter profit largely above expectations on easing supply-chain costs. Other retailers also gained, with Macy’s shares rising 7.5%, and Kohl’s gaining almost 9%.
TJX shares fell 3.3%, while Sirius XM shares rallied 6%.
US retail sales fall, producer prices decline
US retail sales fell for the first time in seven months in October, while producer prices saw a biggest decline in three-and-a-half years last month.
Retail sales slipped 0.1% last month, the Commerce Department’s Census Bureau said. Economists polled by Reuters had forecast retail sales would fall 0.3%.
A separate report from the Labor Department’s Bureau of Labor Statistics showed the producer price index for final demand declined 0.5% in October, the largest decrease since April 2020. The PPI rose 0.4% in September.
Economists had forecast the PPI would edge up 0.1%. In the 12 months through October, the PPI increased 1.3% after rising 2.2% in September.
Japan’s export growth slows
Japanese exports grew for a second straight month in October but at a sharply slower pace. Exports rose 1.6% in October from a year earlier, Ministry of Finance data showed.
Exports in October were faster than the 1.2% increase expected by economists in a Reuters poll, but slower than the 4.3% rise in September.
Imports fell 12.5% in the year to October, versus the median estimate for a 12.2% decrease. The trade balance came to a deficit of 662.5 billion yen ($4.38 billion), versus the median estimate for a 735.7 billion yen deficit, Reuters reported.
Oil prices fall
Crude oil prices dropped, extending losses from the previous session, as signals of higher supply from the United States met worries about lackluster energy demand from Asia, Reuters reported.
Brent futures fell 0.49% to $80.78 a barrel, while US West Texas Intermediate crude (WTI) lost 0.56% to $76.23 a barrel. Both benchmarks fell over 1.5% in the prior session.
Read here: Oil prices drop on record rise in US crude inventories, demand concerns; Brent at $81/bbl
Biden-Xi meet
US President Joe Biden and Chinese President Xi Jinping have agreed to restore some military-to-military communications between their armed forces as the two leaders met for hours on the sidelines of the Asia-Pacific Economic Cooperation summit in San Francisco, PTI reported.
Both sides pledged cooperation that would bring the US and China closer to resuming regular talks under what’s known as the Military Maritime Consultative Agreement, which until 2020 had been used to improve safety in the air and on the sea.
(With inputs from Agencies)
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