Trade Setup for Wednesday: Stock Market Today (13 Dec 2023)

 

Trade Setup for Wednesday

 

Trade Setup for Wednesday, 13 Dec 2023: 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 markets are trading mixed on Wednesday as investors analyzed the key economic data from the region and remained cautious ahead of the US Fed monetary policy outcome. Japan’s Nikkei gained 0.71% as the business confidence at big Japanese manufacturers improved more than expected in the fourth quarter, according to the Tankan survey.

Australia’s S&P ASX 200 index is up 0.35% pushing the index to its fourth-month high. South Korea’s Kospi is down by 0.33%. Shanghai and Hang Seng are trading lower by 0.49% and 0.51% respectively. The Straits Times and Taiwan are trading slightly higher at 7.10 am IST.

 

U.S. Stock Market Indexes Updates

 

The US stock market indexes closed higher on Tuesday due to a rally in tech stocks, as Treasury yields slipped after the release of retail inflation data. The November CPI inflation came in at 3.1% annually in November a tick lower from the 3.2% reported in October, while MoM basis, it came at 0.1%. Meanwhile, economists had forecasted 3.1% annually and flat on monthly. However, the core inflation came as per the economists’ expectations.

The 10-year US Treasury yield dipped slightly to 4.204% from its previous day’s closing of  4.236% on Monday. Investor’s focus now shifted to the Fed’s monetary policy announcement on Wednesday. Energy stocks closed lower due to a sharp fall in crude oil prices.

On the corporate front, Oracle shares fell over 12% after the company’s revenue for the fiscal second quarter missed Wall Street expectations. The shares of Hasbro declined more than 1% after the company said it would be laying off roughly 1100 of its workers.

All three major indexes ended with moderate gains, the Dow Jones Industrial Average (DJIA) and S&P 500 index gained 0.48% and 0.46% respectively, while the Nasdaq index was up 0.70% on Tuesday.

 

European Stock Market Indexes Updates

 

European stock markets closed slightly lower on Tuesday as traders were cautious ahead of the US Fed’s final monetary policy decision on Wednesday. Traders analyzed the latest inflation data from the US, the unemployment rate from the UK, and economic sentiments from Germany.

The US closely-watched CPI inflation rose 0.1% in November and 3.1% annually and the expectation was 3.1% annually and flat on monthly.

Meanwhile, the UK’s Unemployment rate remained unchanged in October, while wage growth slowed as the labor markets cooled in November ahead of the Bank of England monetary policy scheduled on Thursday. Germany’s economic sentiments grew in November and hit its highest level since March.

The pan-European Stoxx 600 index closed lower by 0.20%, with oil & gas losing the most due to a sharp fall in crude oil prices. The key European stock market indexes, CAC and DAX closed edged lower by 0.11% and 0.02% respectively, while the UK’s FTSE was down 0.03% on Tuesday.

 

Indian Stock Market Indexes

 

Indian stock markets ended the volatile session on a weak note on Tuesday. The domestic markets opened in the green amid positive global cues, and the Nifty 50 index hit a new high at 21037.90. In the second half, markets fell sharply and closed lower, as investors were cautious ahead of the key economic data from domestically and the US.

The market breadth was negative, with an advance decline indicating a ratio of 2:3 at the close. The FIIs and DIIs were net buyers in the Indian equity cash segments. FIIs bought shares worth Rs 76.86 crore while DIIs purchased shares worth Rs 1923.32 crore.

 

Stock Market Today

 

The cues from the US markets are positive while Asian markets are trading mixed. Gift Nifty is trading higher by 3 points at the 21075 level. The indications from the global markets and Gift Nifty are positive today.

Indian stock market indexes are likely to open higher as the domestic inflation data came lower than expected and IIP data surged to 16 months high. Traders should remain cautious at the higher level, as markets may remain volatile ahead of the Fed’s monetary policy, which is due later in the day.

 

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News you should read before the trade setup for today, 13 Dec 2023

 

India’s consumer price index (CPI)-based retail inflation in November came at 5.55%, higher than the 4.87% recorded in October, according to the data released by the National Statistical Office and Programme Implementation on Tuesday.

The spike in inflation is due to unfavorable base effects and a rise in food prices. However, the inflation rose below expectations as economists had expected 5.8% inflation in November.

The Index of Industrial Production (IIP) growth surged 11.7% in October to a 16-month high, in September it was recorded at 5.83%. The favorable base effect boosted the manufacturing output by 10.4% higher.

 

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