Trade Setup for Wednesday: Stock Market Today (20 Dec 2023)
Trade Setup for Wednesday
Trade Setup for Wednesday, 20 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 higher on Wednesday tracking gains from Wall Street overnight and on optimism about Bank of Japan’s dovish monetary policy on Tuesday. Japan’s Nikkei extended its previous session gains and is up by 1.62%, while Australia’s S&P ASX 200 index added 0.56%.
South Korea’s Kospi is trading higher by 1.03 %. Shanghai advanced 0.06% as the People’s Bank of China (PBOC) kept the Loan Prime Rate (LPR) unchanged, as widely expected. Hang Seng is also trading higher by 1.18%. The Strait Times and Taiwan are trading in the green territory at 7.10 a.m. IST.
U.S. Stock Market Indexes Updates
The US stock market indexes extended their early gains and closed near the day’s high on Tuesday. Investors shrugged off Fed official’s efforts to temper their hope saying markets are “a bit ahead” in rate cut expectations. The surge in stock prices expanded beyond tech sectors on Tuesday, as material and energy led the rally.
Energy prices gained due to a rise in crude oil prices despite the US announced plans to protect shipping through the Red Sea. The 10-year US Treasury yield closed edge lower to 3.932% on Tuesday from 3.939% settled on Monday.
The major US market indexes, the Dow Jones Industrial Average (DJIA) and the S&P 500 index closed higher by 0.68% and 0.58%, respectively, while the Nasdaq Composite Index advanced 0.66% on Tuesday.
European Stock Market Indexes Updates
European stock market indexes closed higher on Tuesday following a positive session from US markets and as travel and leisure stocks led the gains. On the economic front, the final CPI inflation reading from the Eurozone confirmed an annual rate of 2.4%, a fall of 0.5% month on month, its lowest level since July 2021.
Traders were optimistic that the European Central Bank (ECB) may start cutting interest rates next year. Investors are now looking ahead to Wednesday’s UK inflation data for more clues from the Bank of England’s interest rate cut trajectory.
The pan-European Stoxx 600 index closed higher by 0.36%. The major European stock market indexes, CAC and DAX, gained 0.08% and 0.56%, while the UK’s FTSE was up by 0.31%
Indian Stock Market Indexes
Indian stock market indexes closed marginally higher on Tuesday amid volatility. The domestic markets opened on a positive note and immediately turned red. The indexes recovered in the second half after buying selected heavyweight stocks. Energy and FMCG sectors advanced, while IT sectors witnessed profit booking on Tuesday.
The market breadth was flat, with an advanced decline indicating an equal ratio at the close. FIIs were the net sellers in the Indian equity cash segments they offloaded shares worth Rs 601.52 crore, while DIIs bought shares worth Rs 294.35 crore.
Stock Market Today
The cues from Wall Street and Asian markets are positive today. Gift Nifty closed 87 points higher on Tuesday and is trading flat on Wednesday. As per the indication from Gift Nifty, Indian stock market indexes are likely to open a gap-up and will trade positively today.
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Editor’s Desk
