Trade Setup for Friday: Stock Market Today (5 April 2024)
Trade Setup for Friday, 5 April 2024: Good morning, and welcome to the morning reports, the top things to know ahead of market opening and Trade setup today.
Asian Stock Market Indexes
Asian stock market indexes are trading lower on Friday tracking negative cues from Wall Street overnight. Investors fear that the US Fed will delay cutting interest rates after hawkish comments made by several Fed officials on Thursday. Meanwhile, investors are also concerned about the rising crude oil prices, which are trading near a six-month high due to fresh geopolitical tension.
Japan’s Nikkei 225 is trading sharply lower by 2.30%, as household spending fell less than expected in February. Australia’s S&P ASX 200 is down 0.71%. South Korea’s Kospi index is reversing its previous session’s gain, down 0.88%. Hang Seng resumed trading after a public holiday on Thursday and is trading marginally higher by 0.20%. The Straits Times trades in the negative territory today at 7.10 am IST.
U.S. Stock Market Indexes Updates
The US stock market indexes pared early gains and fell sharply in the second half as geopolitical tension between Israel and Iran escalated and hawkish comments from Fed officials dented the sentiments. Several Fed officials made speeches on Thursday and made hawkish remarks, Richmond Fed President Thomas Barkin said the Fed should not hurry in cutting interest rates as inflation data at the beginning of 2024 is not encouraging.
Meanwhile, Minneapolis Fed president Neel Kashkari said no needed of rate cuts are required this year, as the trend of cooling inflation fades. The weekly jobless claims rose more than expected in the week ended March 29, and investors are not looking ahead to the monthly Job data, due on Friday.
The tech stocks, Apple, Amazon, Microsoft, and Meta Platform all gave up early gains and closed in the red, despite positive remarks from Jefferies. The key US stock market index, the Dow Jones Industrial Average (DJIA) ended lower by 1.35%, falling for the fourth consecutive session. The S&P 500 and Nasdaq Composite indices closed lower by 1.23% and 1.40% respectively.
European Stock Market Indexes Updates
European stock market indexes closed mostly in the green on Thursday. The sentiments remain upbeat as investors’ optimism grew about interest rate cuts soon after the March inflation reading surprisingly declined, as per the flash data showed on Wednesday. On the economic front, HCOB data showed eurozone composite PMI rose above the 50 mark in March, due to strong growth in services activity.
Meanwhile, S&P Global UK services PMI dipped in March, compared to last month, but remained above the 50 mark. The pan-European Stoxx 600 index gained 0.16% with major sectors ending mixed. The mining stocks closed higher while chemical stocks slipped on Thursday. The share price of Volvo cars gained almost 7% after the automaker posted a best-ever month sale in March.
The key European stock market index DAX closed higher by 0.19% while CAC closed almost flat, down only 0.02%. The UK’s FTSE was up 0.48% on Thursday.
Indian stock markets
Indian stock market indexes trimmed early gains and ended the volatile session with decent gains. The domestic markets opened a gap-up in the morning following positive global cues and immediately pared all gains and traded volatile throughout the day. Investors remain cautious ahead of the RBI policy outcome on Friday. In tomorrow’s meeting, RBI is expected to keep the rates and stance unchanged.
The market breadth was strong, with the advance-decline indicating a ratio of 2:1 at the close. FIIs and DIIs were the net sellers in the equity cash segments. FIIs sold shares worth Rs 1136.47 crore, while DIIs offloaded shares, worth Rs 893.11 crore on Thursday.
Stock Market Today
The cues from US and Asian markets are negative today. Gift Nifty ended 76 points down on Thursday and trading flat at 22567 level. The indications from Global Markets and Gift Nifty are negative. Indian stock market indexes are likely to open in the red but will remain volatile due to the RBI monetary policy outcome in the morning session. Indian markets will set direction after the RBI governor’s speech.
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