Global markets: Today's primary stock market triggers are the SGX Nifty and the US dollar.
In early morning trades on Asian financial exchanges today, crude oil fell by 1%. (AFP)
The US stock market moved up on Friday, as all three important benchmark indexes finished in positive territory. As long as there is any concern about a rate rise by the US Fed, gold prices will remain below $2,000 per ounce. The next lucrative week had a modest start on the Asian stock market. Today's early morning trading saw the SGX Nifty open higher while the Dollar Index is under stress from a sell-off.
Here is a summary of some important global market catalysts that might affect the stock market today:
US stock exchange
On Friday, Wall Street's major benchmark indices all ended the day higher. The Dow Jones index increased by 0.7%, the S&P 500 index increased by 0.9%, and the Nasdaq, which is heavily weighted on technology, increased by 0.1% over the weekend.
According to Deepak Jasani, Head of Retail Research at HDFC Securities, concerns over an economic slowdown were exacerbated by weak data, while hawkish signals from the Federal Reserve also roiled sentiment, which is why most global markets traded tepidly on Friday, extending losses into a third straight session. Markets in the Chinese area were lower by more than 1% as investors' attitudes towards domestic equities deteriorated due to worries over the country's uneven economic recovery. Additionally, data revealed that foreign direct investment in China increased far less than anticipated in March, indicating some scepticism about the extent of the economy's recovery this year.
Asian stock exchange
Asian equities are having a sluggish start in a week that will be awash in results. While Japan's Nikkei edged up 0.32 percent, MSCI's largest index of Asia-Pacific equities outside of Japan declined by 0.1%. South Korean KOSPI fell by 0.46 percent, Hong Kong's Hang Seng increased by 0.30 percent, and Shanghai's index fell by 0.42 percent.
Early morning trading saw further selling pressure on the US dollar, although the Dollar Index managed to hold above 101 levels due to rate rise rumours from the US Federal Reserve.
Anuj Gupta, Vice President of Research at IIFL Securities, commented on the cause of the recent sessions' performance in the Dollar Index by saying, "Recent gains in the US dollar may be ascribed to the hawkish US Fed officials on interest rate rise. The immediate support level for the Dollar Index is set at 100, and additional weakness in the US dollar can only be expected when this level is breached.
Today's SGX Nifty
The SGX Nifty today began with an upward gap, signalling a good start on Dalal Street, and went on to achieve an intraday high of 17,698 levels. The index, however, has been trading in a narrow range between 17,660 and 17,698 since morning trade.
"Today's positive SGX Nifty start indicates that important benchmark indexes on Dalal Street will begin trading with an upward gap. Until the index is sustained above 17,500 to 17,550 levels, one can continue to use the buy on dips technique, according to Anuj Gupta of IIFL Securities.
rate of gold today
The price of gold fell below $2,000 per ounce in the morning session and reached $1,981 levels.
Anuj Gupta provided the following explanation for the drop in gold prices today: "Strength in the dollar and expectation of an interest rate hike by the Federal Bank putting pressure on gold and silver, but demand for safe haven assets due to instability and concern over a slowdown in the global economy curb the sharp correction in the bullions." He claimed that the $1,975 and $1,950 per ounce levels serve as support for the current gold price.
Price of crude oil
Crude oil prices decreased by 1% during the early morning session on the Asian stock exchange. Brent crude oil dropped 0.73 percent to $80.76 per barrel, while WTI crude oil's price dropped by 0.98 percent to $77.15 per barrel.
yield on US bonds
US 10 year bond yield fell 0.38 percent to 3.559 levels in the morning session, while US 30 year bond yield plunged 0.20 percent to 3.770 levels.