Trade Setup for Friday 4 Aug: Stock Market Today

 

Trade setup for Friday 4 Aug 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 Markets

 

Asian stock market indexes are mostly trading higher on Friday, as investors bet on the recent beaten-down stocks after two days of sharp fall. Nikkei is trading marginally lower by 0.05 percent while Kospi is trading slightly higher by 0.06 percent. Shanghai and Hang Seng are trading higher by 1.01 percent and 2.32 percent respectively at 7.15 am IST.

Gift Nifty is trading higher by 44 points or 0.23 percent and at 19496 levels. The indication getting from the Asian markets is slightly positive today. Indian stock markets are likely to open on a positive note and trade volatile.

 

U.S. Stock Market Indexes update

 

The US stock market indexes trimmed early losses and closed slightly lower on Thursday, as sentiments dented due to a rise in Treasury yields and lackluster earnings. The benchmark US 10-year-old Treasury yield rose as high as 4.198% during the session, its highest level since November 2022, after closing at 4.077% on Wednesday.

On the economic front, the services activity expanded at a slower pace in July, as compared to the previous month, according to ISM. The initial weekly jobless claims increased slightly by 6000 to 227000 ending July 29, while layoffs dropped to an 11-month low in July. Meanwhile, some cautiousness was there ahead of the monthly Job report, which is due on Friday.

On the earning front, the share price of chipmaker Qualcomm closed lower by around 8% as the third-quarter revenue forecast was below market estimates and disappointing guidance. PayPal declined more than 12% as investors disappoints even after the company reported in-line quarterly results. Amazon and Apple reported their quarterly results after the closing bell and beat street estimates.

The US stock market indexes, Dow Jones and S&P 500 closed lower by 0.19 percent and 0.25 percent respectively, while Nasdaq ended near the flat line, down 0.10 percent on Thursday.

 

European Stock Market Indexes Updates

 

European stock market indexes ended lower on Thursday as investors assessed the latest batch of quarterly results and Bank of England 25 bps rate hikes. The market sentiments were dented, as the eurozone business activity index compiled by the S&P Global showed a decline in July compared to the previous month.

The share price of the London Stock Exchange Group was down over 1% after the group reported lower first-half profits. The share price of Anheuser-Busch InBev gained around 1.7% after the company reported higher revenue and its profit growth beat estimates in the second quarter. 

The pan-European Stoxx 600 index declined by 0.7% as most of the sectors closed in the red. The key European indexes CAC and DAX declined by 0.72 percent and 0.82 percent respectively while FTSE was down by 0.43 percent.

 

Indian Stock Market Indexes

 

Indian stock market indexes fell sharply for the second consecutive after Fitch rating downgrades the US credit rating late Tuesday. The market sentiments were dampened, as investors assessed its implications for the financial markets after US Treasury yield jumped. The persistent selling pressure by foreign investors also weighs the market’s sentiments.

Investors overlooked the positive services activity data released on Thursday. The market breadth was weak with the advance decline indicating a ratio of 1:3 at the close. FIIs were the net sellers in the Indian equity ash segment, they offloaded shares worth Rs 317.46 crore while DII were the buyers, they bought shares of Rs 1729.19 crore on Thursday.

 

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Happy Investing!!

Editor’s Desk