Trade Setup for Thursday, Sept 21, 2023: Stock Market Today

 

Trade Setup for Thursday

 

Trade setup for Thursday, Sept 21, 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 trading lower on Thursday, as the US Fed holds interest rates but the tone was hawkish with one more hike this year and fewer rate cuts in 2024. Japan’s Nikkei is trading lower by 0.89 percent following the negative cues from Wall Street, and as Bank of Japan begins its two-day monetary policy.

Australia’s S&P/ASX 200 extended its early losses and is trading lower by 0.79 percent. South Korea’s Kospi has also extended its early losses and trading lower by 1.22 percent. Shanghai and Hang Seng are trading lower by 0.10 percent and 0.84 percent respectively. Elsewhere, Straits Times and Taiwan are also down significantly at 7.05 am IST.

Gift Nifty is trading lower by 45 points or 0.23 percent at 19860 levels. The indication from the Asian stock market is negative today. Indian stock market indexes will open a gap-down and trade negatively today.

 

U.S. Stock Market Indexes Update

 

The US stock market indexes pared early gains and extended their losses in the last hour on Wednesday, as the Federal Reserve kept the rate unchanged as widely expected but signaled one more hike this year. The market sentiment was downbeat as the central bank hinted a higher interest rates for the longer period with only two rate cuts in the next year 2024 instead of four projected earlier.

The Fed has projected inflation to slow to 2.6% in 2024, unchanged from its prior forecast, while the Core PCE index is expected to come down slightly this year from 3.9% recorded in June to 3.7%. The unemployment rate will be down from its earlier estimates of 4.1% to 3.8% in 2023 but will rise to 4.1% in 2024. 

The economic growth was raised to 2.1% from its earlier forecast of 1% for the current year, and the economic growth for 2024 also raised to 1.5% from earlier estimates of 1.1%.

The key US stock market indexes, Dow Jones and S&P 500 declined 0.22 percent and 0.94 percent respectively, while Nasdaq fell sharply by 1.53 percent on Wednesday.

 

European Stock Market Indexes Updates

 

European stock market indexes closed higher on Wednesday as investors waited for the US Federal Reserve interest rate decision later in the day. The market sentiments remained upbeat, as the UK’s inflation came in below expectation in August, ahead of the Bank of England interest rate decision on Thursday.

The ease in CPI inflation fueled the expectation of pausing interest rate hikes by BoE after September, while it has sparked a big rise in property stocks. The pan-European Stoxx 600 index closed higher by 0.95 percent at the close with almost all sectors ending in the positive territory. Auto stocks led the gains while oil & gas stocks declined on Wednesday.

The key European stock market indexes, CAC and DAX gained 0.66 percent and 0.74 percent respectively, while the UK’s FTSE was up by 0.92 percent on Wednesday.

 

Indian Stock Market Indexes

 

Indian stock market indexes closed lower for the second consecutive day on Wednesday. The equity benchmarks fell sharply amid negative global cues ahead of the US Federal Reserve’s interest rate decisions. The rising oil prices and US Treasury yields also hit the market sentiments on Wednesday. 

The sharp selling in heavyweight HDFC Bank and Reliance stocks dragged the key indices. The market breadth was negative with advance decline indicating a ratio of 1:2 at the close. FIIs and DIIs both were net sellers in the Indian equity cash segments, FIIs offloaded shares worth Rs 3110.69 crore while DIIs sold Rs 573.02 crore on Wednesday.

 

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Editor’s Desk