Trade Setup for Friday 16 June: Stock Market Today

 

Trade setup for Friday 16 June 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens and ahead of Trade Setup today.

Asian stock market indexes are mostly trading higher on Friday, tracking the positive cues from Wall Street overnight. Japan’s Nikkei is trading lower by 0.65 percent, as investors are waiting for the Bank of Japan’s interest rate decision, which is due later in the day.  The other major Asian market indexes, Hang Seng, Shanghai, and Kospi are trading higher by 0.51 percent, 0.27 percent, and 0.25 percent respectively.

SGX Nifty is trading higher by 47 points or 0.25 percent at the 18807 level. The indication getting from the Asian markets is positive today. The Indian stock market indexes are likely to open higher and trade positively on Friday.

 

U.S. Stock Market Indexes update

 

The US stock market indexes closed higher on Thursday, as tech stocks rallied after Treasury yields slipped. The latest data showed a jump in weekly US jobless claims at two years high. This boosted the sentiments, as it fueled hopes that Fed may not lean as hawkish as many fear after the last monetary policy. 

The retail sales data released on Thursday showed an increase in May from the previous month, which traders overlooked as it suggests despite the soft job markets the consumer remains in good shape. Energy stock made a big move on Thursday, as the sentiment got boosted after the interest rate cut in China, in anticipation that demand will improve. 

The key US stock market index, Dow Jones bounced back on Thursday after the previous day’s fall and closed 1.26 percent higher. The S&P 500 was up sixth straight session, gaining 1.22 percent at a 14-month high. The tech-heavy Nasdaq was up by 1.15 percent on Thursday.

 

European Stock Market Indexes Updates

 

European stock market indexes closed lower on Thursday, as the market sentiments were subdued after hawkish comments made by Fed saying two more rate hikes are on the card this year. The weak economic data from China and the 25 bps rate hikes by the European Central Bank (ECB) also hit the market sentiments. 

ECB chief Cristine Lagarde in her post-meeting has announced an additional rate hike for the July meeting to control the sticky inflation also dampening the investor’s mood. The euro gained against the US dollar after the rate hike news.

The pan-European Stoxx 600 index ended lower by 0.1 percent after the ECB’s announcement. The shares of H&M ended as the top gainers in the Stoxx 600 index with a 6.7 percent higher, despite weaker-than-expected second-quarter sales. Construction and materials stocks saw the biggest downturn followed by banks while the media stocks led gains on Thursday.

The key European stock market indexes, CAC and DAX ended lower by 0.52 percent and 0.13 percent respectively while UK’s FTSE was up by 0.33 percent on Thursday

 

Indian Stock Market Indexes

 

Indian stock market snapped 3-day gains and closed lower on Thursday. The domestic markets slipped in the late morning session and selling pressure intensified as the session progressed. The equity benchmarks closed near the day low on the weekly index options expiry day. The hawkish comments from Fed and IMD’s negative monsoon outlook dampen the market sentiments on Thursday. 

The market breadth was almost equal with the advance-decline indicating a neutral ratio at the close. FIIs were the net buyers in the Indian equity markets, they bought Rs 3085.51 crore while DIIs were the net seller, they offloaded shares worth Rs 297.88 crore on Thursday.

 

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News you should read before the trade setup for today 16 June 2023

 

According to the government, data showed on Thursday India’s exports declined 10.3 percent to $34.98 billion in May, while imports fell 6.6 percent to $57.1 billion. The Indian merchandise trade deficit in May stood at $22.12 billion.

 

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Editor’s Desk