Trade Setup for Tuesday: Stock Market Today (5 March 2024)

 

Trade Setup for Tuesday, 5 March 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

 

The Asian stock market indexes are trading mostly lower on Tuesday tracking the losses from Wall Street overnight and as investors assessed the economic data from the region. Japan’s Nikkei 225 is trading lower by 0.41% after hitting the 40000 mark in the previous session, as the latest data showed Tokyo inflation accelerated and Services PMI data fell in February. Australia’s S&P ASX 200 index is trading flat to the positive.

South Korea’s Kospi index is slightly down by 0.21%, as investors assessed the Q4 GDP growth data which remains unchanged from advance estimates. The Shanghai index is trading flat, as China’s weeklong National People’s Congress meeting begins today and investors are looking for services PMI data. Hang Seng is trading lower by 0.92%, while Strait Times and Taiwan are trading in the positive territory at 7.10 am IST.

 

U.S. Stock Market Indexes Updates

 

The US stock market indexes closed lower on Monday, and Nasdaq and S&P 500 indexes fell after hitting a record high last Friday, as an Apple-led slump in tech stocks. The hawkish comments from Fed Officials ahead of Powell’s testimony and job data cooled some expectations of early rate cuts.

On Monday, Atlanta Fed President Raphael Bostic said there is no urgency for rate cuts,  as a fresh wave of demand-led inflation due to strong economic growth counteracting the efforts of the Federal Reserve to control inflation. The chances of a June rate cut, according to the CME FedWatch tool,  slipped to 63% from 75% in the last week. The 10-year Treasury yields climbed to 4.216% from 4.185%, settled on Friday.

Apple’s share fell 2.5% and dragged other tech stocks after the iPhone company received a 1.84 billion euro antitrust fine from the European Commission. The US stock market indexes, the Dow Jones Industrial Average (DJIA), and S&P 500 index closed lower by 0.25% and 0.12%, while the tech-heavy Nasdaq composite index was down 0.41% on Monday.

 

European Stock Market Indexes Updates

 

European stock market indexes closed mixed on Monday, as investors looked ahead to the European Central Bank (ECB) Decision and UK budget later this week. ECB policymakers are expected to keep the interest rate unchanged due to an ease in inflation. Investors will be closely monitoring the policy for more clues on the timings of the rate cuts. 

On the economic front, the latest data released by Sentix showed that the investor’s confidence in the eurozone has risen to its highest level in nearly a year. However, weakness in Germany continues to dampen optimism across the region.

The pan-European Stoxx 600 index closed lower by 0.70% with most of the sectoral indices ending in the negative territory, mining stocks declined the most while IT closed marginally higher. The key European stock market indexes FTSE and DAX closed lower by 0.55% and 0.11% respectively, while France’s CAC closed higher by 0.28% on Monday.

 

Indian stock markets

 

Indian stock market indexes closed slightly higher on Monday. The domestic equity benchmarks opened marginally higher and traded in a range-bound session. The Nifty index closed above the 22400 level on optimism of positive global cues and as the global rating agency Moody’s upgraded India’s 2024 GDP growth to 6.8% from 6.1%.

The market breadth was weak today with the advance decline indicating a ratio of 1:2 at the close. FIIs were the net sellers in the Indian equity cash segments, they offloaded shares worth Rs 564.06 crore, while DIIs were the net buyers they bought shares of 3542.87 crore.

 

Stock Market Today

 

The cues from US and Asian markets are negative today.  The Gift Nifty is trading 37 points down at the 22481 level today. The indication from Gift Nifty is slightly negative. Indian stock market indexes are likely to open in the red and will trade volatile.

 

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Editor’s Desk