Trade Setup for Thursday 4 May: Stock Market Today

 

Trade setup for Thursday 4 May 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens today.

Asian stock markets opened mostly lower on Thursday after US Fed hiked 25 bps interest rates to their highest levels since August 2007. Shanghai reopened after a long Labor Day holiday, while Nikkei is closed today due to a holiday. 

The Shanghai index is trading lower by 0.20 as the latest data showed China’s manufacturing PMI fell in April compared to March. Hang Seng is trading higher by 0.29 percent while Kospi is trading lower by 0.55 percent at 7.20 am IST. SGX Nifty is also trading lower by 61 points or 0.34 percent at 18099 levels.

The indication getting from the Asian markets is mostly negative. The Indian stock market indexes are likely to open in the red and would remain volatile due to the weekly expiry of Index options on NSE.

 

U.S. Stock Market Indexes update

 

The US stock market indexes gave up intraday gains and closed lower on Wednesday after the Federal Reserve lifted interest rates by 25 bps to their highest levels in 16 years. Fed has also signaled a possible pause in June but all depending on incoming economic data. 

In its policy statement, the Fed has highlighted the resilience of the banking system and also reaffirmed its commitment to returning inflation to its 2% target. On the economic front, the US services sector showed improvement in April according to the latest survey showed.

Banking stocks pushed the broader market lower amid concern over the higher interest rates for a longer period will continue to hurt regional banks. The US Treasury bond yields fell after the Fed hiked the interest rates as investors believe that the US central bank reached the end of the tightening cycle. 

The key US stock market indexes Dow Jones and S&P 500 fell 0.80 percent and 0.70 percent respectively while Nasdaq was down by 0.46 percent on Wednesday.

 

European Stock Market Indexes Updates

 

European stock market indexes ended with modest gains on Wednesday as the fresh set of earnings continued to motivate investors. The upside remained capped as the market participants were concerned about the US Federal Reserve’s next move on interest rates.

On the economic front, the eurozone unemployment rate hit a record low of 6.5% in March, reported by the European Union’s statistics agency

Unicredit shares rose after the bank reported quarterly results and lifted annual targets. French Bank BNP Paribas profits doubled in the first quarter. The key European stock market indexes FTSE and CAC gained 0.20 percent and 0.28 percent respectively, while DAX was up by 0.56 percent on Wednesday.

 

Indian stock market updates

 

Indian stock market snapped a six-day winning streak and ended with minor cuts on Wednesday.  The sentiments were downbeat due to weak global cues. Investors remain cautious and avoided fresh positions ahead of the US Federal Reserves interest rate decisions.

The market breadth was negative on Wednesday. FIIs were the net buyers, they bought shares worth Rs 1338, while DIIs offloaded shares 583.99 crore on Wednesday.

 

Q4 Results Today

 

Housing Development Finance Corporation, Hero MotoCorp, Adani Enterprises, Blue Star, Bombay Dyeing & Manufacturing Company, CEAT, Firstsource Solutions, IDFC, Dabur India, Tata Power, TVS Motor, Sundram Fasteners, 360 ONE WAM, Aptus Value Housing Finance, Jammu & Kashmir Bank, Mindspace Business Parks REIT, and United Breweries will announce their quarterly earnings on 4 May 2023

 

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Happy Investing!!

Editor’s Desk