Trade setup for Thursday 27 July 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 Markets
Asian stock market indexes are trading higher on Thursday, as US Federal Reserve raised interest rates by 25 bps as widely expected. The key indexes in the region, Nikkei, Kospi, Hang Seng, and Shanghai are trading higher by 0.08 percent, 0.77 percent, 0.67 percent, and 0.20 percent respectively at 7.10 am IST
Gift Nifty is trading higher by 39 points or 0.20 percent at 19845 levels. The indication getting from the Asian stock markets is positive today. Indian stock market indexes are likely to open higher today and trade positively.
U.S. Stock Market Indexes update
The US stock market indexes closed mixed on Wednesday. Dow Jones ended higher and scored a 13-day winning streak, as traders digested a Fed’s interest rate decision and major corporate earnings. Federal Reserve hiked interest rates by a widely expected 25 bps to their highest levels in more than 22 years. US 10-year-old Treasury yields slipped after Fed Chair Powell said that the central bank could pause again here.
However, Fed Chair Jerome Powell said in a press conference that the central bank is closely watching economic data, but noted that a rate cut is very unlikely this year. Powell’s message in the press conference was very clear that the Fed will wait and see economic data to make further decisions on interest rates.
Microsoft declined after reporting slower growth in quarterly results, as it ramps up its artificial intelligence capabilities, while Alphabet gained after posting better-than-expected results. Boeing’s share also gained, after the company reported narrower-than-expected losses. The PacWest share jumped around 27% after the news of a deal with Banc of California.
The key US stock market index Dow Jones gained 0.23 percent while S&P 500 was closed flat to the negative, down by only 0.02 percent. The tech-heavy Nasdaq trimmed some intraday losses and fell 0.12 percent on Wednesday.
European Stock Market Indexes Updates
European stock markets closed lower on Wednesday, as investors remain cautious ahead of the US Fed interest decision and a slew of quarterly earnings. Banking counters were closed lower despite Deutsche Bank and UniCredit both reported better than expected quarterly results. British aerospace and defense firm Rolls-Royce jumped over 20% after it raised its profit forecast for the current year.
The pan-European Stoxx 600 index was down 0.53 percent, as investors are looking ahead to the European Central Bank’s (ECB) interest rate decision on Thursday. The latest data showed that eurozone bank lending fell again in June.
The key European stock market index, CAC fell sharply by 1.37 percent, as LVMH shares declined over 5 percent after the second quarterly results failed to impress investors, while DAX was 0.50 percent. The UK’s FTSE index also declined 0.17 percent on Wednesday.
Indian Stock Market Indexes
Indian stock markets ended higher on Wednesday amid mixed global cues. The market sentiments were positive as IMF raised its GDP growth forecast for India and foreign investors turned into buyers after selling for two consecutive days in the Indian equity cash segment. However, the upside was capped due to cautiousness ahead of the Fed interest rate decision later in the day.
The market breadth was quite strong with the advance decline indicating a ratio of 3:2 at the close. FIIs and DIIs both were net buyers on Wednesday in the Indian equity cash segment. FIIs bought shares worth Rs 922.84 crore while DIIs purchased shares worth Rs 470.10 crore.
Quarterly Earnings (Q1FY24)
Nestle India, ACC, Bajaj Finserv, Indian Hotels, Indian Bank, Indus Towers, Ajanta Pharma, Arvind, Astec Lifesciences, Bharat Electronics, Birlasoft, Dr. Lal PathLabs, Laurus Labs, Nippon Life India Asset Management, RailTel Corporation of India, Coromandel International, Home First Finance Company, Indian Energy Exchange, Intellect Design Arena, JK Lakshmi Cement, Sona BLW Precision Forgings, Sundram Fasteners, Symphony, Trident, Tata Teleservices, and Ujjivan Small Finance Bank and others will announce their Q1FY24 quarterly earnings on 26 July.
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