Investors are grappling with the risk that the US Federal Reserve will taper asset purchases and hike interest rates more quickly than expected to fight price pressures. Traders are also waiting to see if President Joe Biden picks incumbent Jerome Powell or Lael Brainard as the Fed chair nominee
Nifty view: Nagaraj Shetti, technical research analyst at HDFC Securities
The short term trend of Nifty is down and the bears have started to participate actively in the market. The next important support for bulls at NSE Nifty is around 17,750 and a move below this area is likely to open sharp weakness in the near term. Minor upside bounce in Nifty from the lower support is not ruled out in the short term.
SGX Nifty futures trade flat at 17,870.80
Oil extends declines as U.S. looks to lead SPR shock treatment
U.S. oil was under pressure on Thursday, adding to an overnight plunge on a Reuters report that the United States was asking major oil consumers like China and Japan to consider a coordinated release of oil reserves to lower prices.
The bid by the U.S. administration to shock markets comes as inflationary pressures, partly driven by surging energy prices, starts to produce political backlash, as the world fitfully recovers from the worst health crisis in a century.
U.S. crude was down 62 cents or 0.8% at $77.74 a barrel in Asian deals, having fallen 3% overnight. Brent crude fell 39 cents or 0.5% to $79.89 a barrel after falling 2.6% to the lowest close since early October on Wednesday.
Asian stocks fall on inflation risks
Most Asian stocks fell Thursday and Treasuries were steady as traders weighed risks to the global economic recovery from the prospect of faster monetary-policy tightening to tackle inflation.
Equities slipped in Japan, China and Hong Kong, where technology stocks tumbled. S&P 500 futures fluctuated and Nasdaq 100 contracts rose. U.S. shares pulled back overnight amid home building data signaling high materials prices and labor shortages. Retailer Target Corp. sank on concerns that rising costs will dent margins.
S&P 500 futures were steady, while the Nasdaq 100 was little changed. Japan’s Topix index fell 0.5% and Australia’s S&P/ASX 200 Index rose 0.2%. Hong Kong’s Hang Seng Index fell 1.3% and China’s Shanghai Composite Index lost 0.4%.
Ovrenight on Wall Street, all three major equity indices retreated, shrugging off good earnings from retailers and consolidating recent market records.
The Dow Jones Industrial Average ended down 0.6% at 35,931.05. The blue-chip index down 1.4% from its most recent record on 8 November. The S&P 500 fell 0.3% to 4,688.67 while the Nasdaq also eased 0.3% to 15,921.57.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!