Trade Setup for Wednesday 31 May: Stock Market Today

 

Trade setup for Wednesday 31 May 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 market indexes are mostly trading lower on Wednesday, as investors are cautious ahead of the US debt ceiling vote and the slew of economic data due later in the day. Nikkei is trading lower by 0.92 percent, as Japan’s retail sales in April missed the economist’s expectation. 

Hang Seng is trading lower by 1.78 percent, despite a rally in the last hour of the previous session. Shanghai Index is trading lower by 0.48 percent, as the Reuter’s poll of economists showed that China’s manufacturing PMI is expected to remain in contraction in May. Kospi is trading higher by 0.19 percent at 7.15 am IST.

SGX Nifty is also trading lower by 49 points or 0.26 percent at 18681 levels. The indication getting from the Asian markets is negative. The Indian stock market indexes are likely to open negative and will trade in a tight range as the GDP numbers for the 4th quarter and FY2022-23 are expected later in the day.

 

U.S. Stock Market Indexes update

 

The US stock market indexes closed mixed on Tuesday, as investors are looking ahead to the prospect of Congress passing the debt ceiling bill before the June 5 deadline to avoid a default. Technology stocks pared early gains despite the rally in Nvidia shares. 

On the economic front, the latest data showed that consumer confidence in May is better than economists forecast, and the data suggests another Fed rate hike in June. Consumer staples and energy stocks dragged the broader markets. The oil prices fell around 4% on Tuesday, due to the fear of another rate hike and uncertainty regarding production cuts in the June 4th OPEC+ meeting. 

The key US stock market index Dow Jones closed marginally lower by 0.15 percent while S&P 500 ended flat on Tuesday. The tech-heavy Nasdaq trimmed early gains and closed higher by 0.32 percent.

 

European Stock Market Indexes Updates

 

European stock market indexes extended their early losses and closed in deep cuts on Tuesday. Investors remain cautious as US lawmakers prepare for debt ceiling vote. Crude oil prices fell around 3% ahead of the OPEC+ member meeting.

The pan-European Stoxx 600 closed lower by 0.09 percent, and major sectors ended in negative territory. Food and beverages stocks led the losses, while utilities stocks rose on Tuesday. On the economic front, the UK’s fresh data showed a rise in shop price inflation in May.

The European stock market indexes FTSE and CAC closed lower by 1.40 percent and 1.30 percent respectively, while DAX was down by 0.28 percent on Tuesday.

 

Indian Stock Market Indexes

 

Indian stock markets closed marginally higher on Tuesday, following positive cues from Asian markets. The domestic markets traded volatile in a tight range. The broader markets also closed higher, following their larger peers. The market breadth was almost flat as an advance decline indicating a neutral ratio at the close.

FIIs were the net buyers in the Indian equity markets and bought shares worth Rs 2085.62 crore, while DIIs were the net sellers, they offloaded shares worth Rs 438.93 crore on Tuesday. 

 

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