Trade Setup for Friday, 20 October 2023: Stock Market Today
Trade Setup for Friday
Trade setup for Friday, 20 October 2023- Good morning, and welcome to the morning reports, the top things to know ahead of market opening and Trade setup today.
Asian Stock Markets
Asian stock market indexes are trading lower on Friday following the negative cues from Wall Street overnight. Japan’s Nikkei is trading lower by 0.64 percent as the inflation rate cools down to 3% in September from 3.2% in August but remains high above the BoJ target of 2%. Japan’s core inflation also slowed to 2.8% in September from 3.1% in August. Australia’s S&P ASX 200 index fell sharply in the early trade, the index is down 1.34 percent.
South Korea’s Kospi extended early losses and is trading lower by 1.89 percent. Shanghai and Hang Seng indexes are down marginally by 0.25 percent and 0.38 percent respectively. Elsewhere, the Straits Times and Taiwan are also trading in the deep red at 7.15 am IST.
Gift Nifty is also trading lower by 35 points or 0.18 percent at 19520 levels. The indication from the Asian stock market is negative today. Indian stock market indexes are likely to open lower and trade volatile today.
U.S. Stock Market Indexes Updates
The US stock market indexes closed lower on Thursday due to a surge in Treasury yields and after the speech from Federal Reserves Chair Jerome Powell. The market sentiments were also dampened, due to the mixed quarterly results announced.
Powell in his speech said that inflation is still above the set target of 2% and would likely require lower economic growth. He further said the Fed is “proceeding carefully” on future rate hikes due to a surge in Treasury yields that have helped tighten financial conditions “significantly”.
The weekly jobless claim data showed that the number of Americans filing for jobless benefits fell to 198000 to a nine-month low last week, suggesting strong job growth.
On the earning front, Tesla declined 9.30% as the company missed analyst expectations on earnings and revenue in the third quarter. Meanwhile, Netflix gained 16.05% after the streaming company beat estimates in the third quarterly earnings.
The key US stock market indexes Dow Jones and S&P 500 declined 0.75 percent and 0.85 percent respectively while Nasdaq fell 0.96 percent on Thursday.
European Stock Market Indexes Updates
European stock market indexes closed lower on Thursday for the third consecutive day, as investors assessed the Middle East conflict and more quarterly earnings. The pan-European Stoxx 600 index closed lower by 1.19 percent, at its lowest level since March 15. Tech stocks closed higher while Auto stocks led the losses.
The London Stock Exchange limits trading to the FTSE 100, FTSE 250, and IOB securities just over 30 minutes ahead of the end of the trading session, as it said it was investigating an “incident.” The key European stock market indexes CAC and DAX closed lower by 0.64 percent and 0.33 percent respectively while FTSE was down by 1.18 percent on Thursday.
Indian Stock Market Indexes
Indian stock markets closed lower for the second consecutive day on Thursday. The domestic markets made a gap-down opening following the negative cues from Wall Street and Asian peers and traded below their neutral lines. However, indices erased most of the early losses in the second half and closed marginally lower for the day.
The market breadth was neutral with the advance decline indicating almost an equal ratio at the close. FIIs were the net sellers they offloaded shares worth Rs 1093.47 crore while DIIs bought shares worth Rs 736.15 crore on Thursday.
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