Trade Setup for Wednesday 7 Dec: Market News

 

Trade setup for Wednesday 7 Dec– Good morning and welcome to the morning reports, the top things to know before the stock market opens today

Asian stock market indexes are trading marginally lower on Wednesday following the negative cues from Wall Street overnight. Nikkei, Hang Seng, and Shanghai are trading lower by 0.43 percent, 0.06 percent, and 0.22 percent respectively. SGX Nifty is trading slightly lower by 27 points or 0.14 percent at 18725 levels.

The global cues are negative, as per the indication getting from Asian markets, Indian stock market indexes are likely to open in a cautious mode. RBI Policy outcome is due in the morning and will set the market direction.

 

The US and European stock market indexes update

 

The US stock market indexes closed lower on Tuesday as investors fretted over Federal Reserve rate hikes for longer and further talks of a looming recession. Investors fear economic growth if Fed continues its aggressive stance, following strong data on the jobs and services sector in recent days.

Meta platforms slipped over 6 percent while Apple, Amazon, and Alphabet also fell and dragged down the markets. The key US stock market indexes, Dow Jones and S&P 500 fell 1.03 percent and 1.44 percent respectively while Nasdaq was down by 2 percent at the close on Tuesday.

European stock market indexes closed lower on Tuesday as the strong economic data released recently in the US suggested policymakers might remain aggressive in their policy stance. Earlier, sentiments were hit by S&P Global’s eurozone construction PMI which fell in November for the seventh consecutive month across the sector.

The pan-Europe Stoxx 600 index was down by 0.58 percent. The European benchmarks FTSE and DAX were down by 0.61 percent and 0.72 percent respectively while CAC fell 0.14 percent on Tuesday.

Indian stock market updates

 

Indian stock markets closed lower on Tuesday following weakness in global markets. Traders were also cautious ahead of the RBI policy outcome due on Wednesday. The market breadth was negative as advance-decline indicating a ratio of 3:4 at the close. FIIs and DIIs both were the net sellers in the equity cash segment. FIIs sold Rs 635.35 crore while DIIs sold Rs 558.67 crore worth of shares on Tuesday.

 

News you should read before the trade setup for today 7 Dec 

 

On Tuesday, after World Bank revised India’s GDP growth to 6.9% from 6.5%, the Fitch rating also retained the country’s economic growth forecast at 7% for the current fiscal. It said India could be one of the fastest-growing emerging markets this year. 

The US-based rating agency, however, cut the projections for the next two financial years. Earlier, Fitch projected India’s GDP to grow at 7% in the current fiscal and slow to 6.2% in 2023-24 and 6.9% in 2024-25.

The Reserve Bank of India’s policy meeting outcome is scheduled today. The central bank has raised rates by a cumulative 190 basis points since the start of the tightening cycle in April 2022. According to the Fitch rating agency, RBI may increase the repo rate by 25 basis points on December 7 and then stay on hold in all of 2023 

 

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