Global markets: SGX Nifty to US dollar — key triggers that may dictate stock market today

Global markets today: US stocks suffered from daily losses last Friday, witnessing heavy selling pressure and extended its weekly rout following data that showed the core PCE rose at the highest rate in six months. The US dollar continue to remain strong as the Dollar Index sustained above 105 levels despite profit booking trigger in early morning deals on Monday. Signaling further weakness in Indian stock markets, SGX Nifty has opened lower at 17,505.

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

US markets

Weekly losses of major indices on Wall Street went further deep on Friday as S&P 500 index nosedived 1.05 per cent, Dow Jones corrected to the tune of 1.02 per cent and tech heavy weight Nasdaq lost 1.69 per cent.

On reason for weakness on Wall Street, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “US stocks extended its weekly rout following data that showed the core PCE rose at the highest rate in six months. The annual Core PCE Price Index, which is also the Federal Reserve’s preferred gauge of inflation, edged higher to 4.7 per cent and came in higher than the market expectation of 4.3 per cent.”

In early morning deals on Monday, SGX Nifty opened lower at 17,505 and went on to hit intraday low of 17,477.

Decoding weak opening of SGX Nifty today, Anuj Gupta, Vice President — Research at IIFL Securities said, “This lower opening of SGX Nifty today suggests sideways to negative trend and we may expect tepid opening on Dalal Street today. The immediate support for SGX Nifty is placed at 17,380 whereas 17,250 is expected to remain a sacrosanct support for the index. Likewise, on the upper side, SGX Nifty is expected to face hurdle at 17,650 whereas 17,800 may work as major hurdle for the index.”

Asian markets

In Monday morning deals, the Japanese Nikkei is down 0.15 per cent, Shanghai index is down 0.42 per cent, Hong Kong’s Hang Seng has corrected 0.88 per cent while South Korean KOSPI has corrected 1.19 per cent.

US dollar rates

Despite profit booking in early morning session, US dollar has managed to maintain its strength as Dollar Index is sustaining above 105 levels. Dollar Index is currently 0.10 per cent down at 105.095 levels on Monday morning deals.

On reason for strong US dollar, Marc said, “The hawkish Federal Reserve concerns has provided strong support to the safe-haven greenback, as hawkish Federal Reserve (Fed) talks underpin markets bets of higher Fed rates. Cleveland Fed President Loretta Mester told CNBC on Friday that his funds’ rate was above the median in December and still thinks they need to be somewhat above 5 per cent.”

US bond yield

US 10-year bond yield is currently down by 0.34 per cent at 3.935 whereas US 30-year bond yield is down 0.42 per cent at 3.922.

Crude oil price

Due to rise in US dollar rates, crude oil price on MCX surged more than 1.55 per cent on Friday and closed at 6,355 per barrel whereas in international spot market crude oil prices are available at $76.40 per barrel.

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.

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