Trade Setup for Tuesday: Stock Market Today (6 February 2024)
Trade Setup for Tuesday, 6 Feb 2024: Good morning, and welcome to the morning reports, the top things to know ahead of market opening and Trade setup today.
Asian Stock Markets
Asian stock market indexes are mostly trading lower on Tuesday following losses from Wall Street and as investors are waiting for the Reserve Bank of Australia’s interest rate decision later in the day. Japan’s Nikkei 225 is trading lower by 0.63% as the country’s household spending fell more than expected in December.
Australia’s S&P ASX 200 index is down by 0.76%, ahead of the central bank interest rate decision. South Korea’s Kospi index is trading lower by 0.84%. Shanghai is down by 0.68%, while Hang Seng is trading higher by 0.79% at 7.10 am IST.
U.S. Stock Market Indexes Updates
The US stock market indexes closed in the red on Monday, the Dow Jones fell the most, due to a fall in consumer stocks led by McDonald’s and a spike in Treasury yields following Chairman Jerome Powell’s comments that dashed the hope of early interest rate cuts. The 10-year Treasury yield climbed to 4.162%, up from Friday’s close of 4.023%.
On the economic front, the ISM service activity data came higher than expected in January, for the 13th straight month. The burger chain MacDonald has missed market estimates in fourth-quarter results due to the ongoing crisis in the Middle East. The share price of McDonald’s closed lower by 3.78%.
The key US stock market indexes, the Dow Jones Industrial Average (DJIA) and S&P 500 index fell 0.71% and 0.32% respectively, while the tech-heavy Nasdaq Composite index was down by 0.20% on Monday.
European Stock Market Indexes Updates
European stock market indexes erased early gains and closed slightly lower on Monday, as investors digested the latest economic data released in the region and US Fed chair Powell’s comments about the pace of rate cuts.
The economic data released on Monday showed that the eurozone’s composite PMI increased to 47.9 in January, up from 47.6 in December, in line with earlier estimates. However, the services PMI came slightly lower to 48.4 from December’s 48.8, while the HCOB Eurozone manufacturing PMI rose to 46.6 to its highest level in ten months.
Meanwhile, a separate survey done by Sentix showed Investor sentiment in the eurozone rose in February for the fourth straight month. In the UK, the Services PMI data in January came higher than expected.
The pan-European Stoxx 600 index closed lower by 0.05%. The key European indexes CAC and DAX closed lower by 0.03% and 0.08% respectively, while the UK’s FTSE was down by 0.04% on Monday.
Indian stock markets
Indian stock markets erased all intraday gains in the last hour and closed with moderate losses on Monday. The domestic markets opened higher despite negative cues from Asian markets. The market sentiments were positive as India’s HSBC Services PMI data came above expectations at 61.8 points, up from 59. However, profit booking emerged at a higher level, as US Treasury yields spiked above 4% after strong job reports on Friday.
The market breadth was slightly negative, the advance-decline indicating a ratio of 3:4 at the close. FII were the net buyers in the Indian equity cash segments, they bought shares worth Rs 518.88 crore. DIIs were the net sellers, they offloaded shares worth Rs 1188.68 crore on Monday.
Quarterly Earnings for Today
Britannia Industries, FSN E-Commerce Ventures (Nykaa), Birla Corporation, Computer Age Management Services, Endurance Technologies, Godrej Properties, NLC India, Trident, Tata Teleservices (Maharashtra), Welspun Corp JK Tyre & Industries, Lemon Tree Hotels, Max Financial Services, Nazara Technologies, and Zaggle Prepaid Ocean Services will announce their quarterly earnings on February 6.
Stock Market Today
The cues from Wall Street and Asian markets are negative today. On Monday, Gift Nifty closed 30 points higher and is currently trading 32 points down at the 21803 level. The indication from Gift Nifty is positive today. Indian stock market indexes are likely to open in the green but will remain volatile.
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