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

Global markets today: After closing out its worst week since early December 2022, US stocks witnessed some bottom fishing and finished higher on Monday session. However, this rise in equities can be attributed to the profit booking by investors in US dollar as Dollar Index came below 105 on Monday. However, Us inflation concern is still around as WTI crude oil price advances towards $76 levels as investors look optimist for Caixin Manufacturing PMI. Meanwhile, in early morning deals, US dollar has witnessed buying interest while SGX Nifty is trading flat but in positive territory.

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

US markets

As mentioned above, Wall Street witnessed some bargain hunting on Monday. Dow Jones gained 0.22 per cent, S&P 500 index shot up 0.31 per cent while Nasdaq surged 0.63 per cent.

“Last week, some data frightened investors, the US bond yield climbed again. People have become a bit numb to rate hikes and understand that the terminal rate may be higher than expected, and the market is not concerned about inflation data for the next month, but for the next 6, 9, or even 12 months,” said Marc Despallieres, Chief Strategy and Trading Officer at Vantage.

US dollar rate

On Monday, US dollar witnessed some profit booking and Dollar Index came below 105 levels. However, in early morning deals today, US dollar has managed to gain attention of bulls. Dollar Index is up 0.13 per cent at 104.737 on Tuesday morning deals.

“US Dollar Index holds lower grounds near $104.60 during the mid-Asian session on Tuesday, after posting the biggest daily loss in five months. It’s worth noting that the greenback’s previous losses could be linked to mixed US data and a retreat in the US Treasury bond yields. At the time of writing, price trading at $104.639,” Marc Despallieres said.

Asian markets

In early morning session, Japanese Nikkei is up 0.39 per cent, Shanghai index has added 0.23 per cent, Hong Kong’s Hang Seng is down 0.55 per cent whereas South Korean KOSPI is is up over 1 per cent.

Signaling tepid opening on Dalal Street, SGX Nifty today opened flat but in green territory on Tuesday. SGX Nifty today opened at 17,494 and went on to make intraday high of 17,537. However, profit-booking soon triggered and the index came below and hit intraday low of 17,383. Meanwhile, it recovered soon and came at 17,491, around 3 points higher from its Monday close.

“We can expect some short covering in SGX Nifty as the index is trading in oversold zone. It has support placed at 17,300 and 17,150 whereas it is facing hurdle at 17,620 and 17,750 levels,” said Anuj Gupta, Vice President — Research at IIFL Securities.

Crude oil price

WTI futures on NYMEX, have extended their recovery above the immediate resistance of $75.80 in the early Asian session. The oil price is exposed to the critical resistance of $76.00 as investors are optimistic about the release of the Caixin Manufacturing PMI data, which is scheduled for Wednesday.

At the time of writing, crude oil price in international spot market was up 0.03 per cent at $75.71 per barrel levels.

US bond yield

In early morning session, US 10 years bond yield is up 0.15 per cent at 3.928 while US 30 years bond yield has surged 0.26 per cent at 3.929 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.

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