Trade Setup for Monday 28 Aug: Stock Market Today

 

Trade setup for Monday 28 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 markets started the week on a positive note after US Fed’s Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday. The key Asian stock market indexes, Nikkei and Kospi are trading higher by 1.58 percent and 0.76 percent respectively. 

China’s Shanghai index opened above 5 percent after the country halved the stamp duty on stock trading effective Monday to boost struggling markets. Shanghai and Hang Seng are trading higher by 2.97 percent and 2.56 percent respectively at 7.15 am IST. The other Asian markets, Straight Times and Taiwan are also trading higher at this moment.

Gift Nifty is trading higher by 41 points or 0.21 percent at 19278 levels. The indication getting from the Asian markets is positive. Indian stock market indexes are likely to open higher and trade above the flat line today.

 

U.S. Stock Market Indexes Update

 

The US stock markets gained on Friday amid initial volatility, as investors assessed the Federal Reserve Chair Jerome Powell’s speech, which was less hawkish than the markets had feared. The latest survey from Michigan University showed that the consumer sentiments index fell in July, as the inflation expectations for the year ahead edged higher.

The yields on 10-year Treasury notes ended in the red at 4.234% on Friday after hitting the day’s high of 4.375% on Friday, The share price of Affirm jumped to 28% after the company reported stronger-than-expected fiscal fourth-quarter results. 

The Utility company Hawaiian Electric Industries slumped 19% after Maui County sued for damages following the recent wildfires, while S&P Global Ratings cut its credit rating. The US stock market indexes, Dow Jones and S&P 500 gained 0.63 percent and 0.73 percent respectively while Nasdaq composite index was up by 0.94 percent on Friday.

 

European Stock Market Indexes Updates

 

The European stock market indexes pared early gains and closed slightly higher on Friday after US Fed Chair Jerome Powell’s speech at the Jackson Hole symposium. The pan-European Stoxx 600 index erased early gains and closed slightly lower by 0.04 percent, as Powell warned possibility of further interest rate hikes to fight against inflation. 

Shares in Watches of Switzerland Group fell sharply around 20% on Friday morning, after luxury watchmaker Rolex announced a deal to buy watch retailer Bucherer. The latest data showed that Germany’s GDP growth was zero in the April-June quarter.

The key European stock market indexes, CAC and DAX closed slightly higher by 0.21 percent and 0.07 percent respectively while the UK’s FTSE was up by 0.07 percent on Friday.

 

Indian Stock Market Indexes

 

Indian stock market indexes ended lower for the second straight session on Friday following weak global cues. Traders remained sidelined ahead of the US Fed Chair Powell’s speech at the Jackson Hole Symposium. Sentiments were further hit as RBI minutes of the last meeting hinted that further rate hikes could be a possibility due to the recent inflationary pressure.

All major sectors were closed in the red on Friday with Nifty PSU Bank, Realty, and Metal declining the most. The market breadth was negative with advance decline indicating a ratio of 1:2 at the close. FIIs were the net sellers, they sold shares worth Rs 4638.21 crore while DIIs were the net buyers they bought shares worth Rs 1414.35 crore on Friday.

 

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Happy Investing!!

Editor’s Desk