Sensex Today | Share Market Live Updates : Asian stocks followed gains on Wall Street after better-than-expected US payrolls data on Friday. Oil fell as Israel said it would pull some troops out from Gaza.
Benchmark equity indexes advanced in Japan while futures in Hong Kong pointed to gains. Futures for US stocks edged higher after both the S&P 500 and Nasdaq 100 indexes climbed more than 1% on Friday. China’s financial markets reopen after a two-day holiday.
Treasuries ticked lower as traders dialed back the prospect of Federal Reserve interest-rate cuts this year following the US jobs numbers. The unemployment rate edged lower to 3.8% in March, wages grew at a solid clip, and workforce participation rose, underscoring the strength of a labor market.
“Reasons to dismiss the employment data are becoming thinner” and lends support to the re-acceleration hypothesis, said Marc Chandler, chief market strategist at Bannockburn Global Forex. “The economy is still growing faster than what the Fed regards as the long-term non-inflation pace.”
Oil retreated more than 1% as traders monitored geopolitical tensions in the Middle East.
In Asia, traders will be keeping a closer eye than usual on China’s daily yuan reference rate as markets reopen from a holiday. Investors will be looking for signs of official pushback after the currency weakened toward a no-go area last week. The fixing may signal whether Beijing will support the currency more vigorously or allow a moderate depreciation.
What China “discovered is that there was a heck of a lot more depreciation and selling pressure under the surface than they probably anticipated,” said Richard Franulovich head of foreign-exchange strategy at Westpac Banking Corp. “This is what happens periodically when you have a managed currency.”
The focus will soon shift to US March inflation data due mid-week. Prices may stay above the Fed’s target band, as first quarter corporate earnings season gears up with results from banks including JPMorgan Chase & Co. and Citigroup Inc. due on Friday.
Stock bulls are starting to hedge their exposures as Fed rate cuts are pared and questions over how far the rally may go. Cboe Volatility Index, known as the VIX, touched the highest since November last week as the benchmark S&P 500 Index suffered its first weekly loss in three weeks.
Elsewhere, New Zealand’s central bank, the first to hike in the post-Covid tightening cycle, is expected to push back against easing bets when it delivers it decision this week. Meanwhile, the European Central Bank is likely to keep its key rate unchanged as traders eye rate cuts within months. Minutes of the last meeting suggested a June easing is likely, while Governing Council member Yannis Stournaras last month said four cuts are possible this year.
Elsewhere, gold declined after surging to record prices last week.
Stock Market Today Live : Global cues, Gift Nifty indicate strong open for Indian markets
Stock Market Today Live : Indian markets were likely to open on a positive note on Monday, led by positive cues from global markets.
At 8:30 am, the Gift Nifty futures, at 22,653.50 was up nearly nearly 150 points from Nifty 50’s Friday close of 22,513.70, also indicating a gap up open for the Indian benchmarks.
Asian shares started the week on a subdued note on Monday, while the dollar firmed as investors weighed when the U.S. Federal Reserve will start cutting rates in the wake of yet another blowout jobs report.
Oil prices fell nearly 2% as Middle East tensions eased after Israel withdrew more soldiers from southern Gaza, while gold prices slumped 1% after scaling record high on Friday as U.S. Treasury yields remain elevated.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.26% higher, while Tokyo’s Nikkei rose 1%. China mainland stocks reopened after extended holidays from Thursday, with the blue-chip gauge 0.5% lower. Hong Kong’s Hang Seng Index rose 0.33%.
Wall Street’s main indexes closed higher on Friday after data showed U.S. job growth blew past expectations in March and wages increased at a steady clip, suggesting the economy ended the first quarter on solid ground.
Investor focus this week will be squarely on the U.S. consumer price index (CPI) report, which is expected to show core inflation slowing to 3.7% in March from 3.8% the prior month.
The yield on 10-year Treasury notes was up 4.4 basis points to 4.422%.
The European Central Bank is due to meet later this week and is widely expected to keep rates steady.
In commodities, spot gold dropped 0.5% to $2,317.09 an ounce, having breached record peak last week.
U.S. crude fell 2.32% to $84.89 per barrel and Brent was at $88.89, down 2.5% on the day.
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!
Reference :
Reference link
Share via:
