Trade setup for Monday 4 Sept 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 markets are trading higher on Monday ahead of China’s Tarde data and Australia’s interest rate decision later this week. Japan’s Nikkei is up by 0.34 percent, gaining for the sixth consecutive day. Australia’s S&P/ASX 200 is also up by 0.53 percent, while South Korea’s Kospi erased early gains and trading flat.
Hang Seng Index (HSI) is trading higher by 1.26 percent, HSI was closed on Friday due to super Typhoon Saola. Shanghai Index is trading positively, up by 0.52 percent on Monday. Taiwan and Straits Times have also started the week on a positive note at 7.05 a.m. IST.
Gift Nifty is trading slightly higher, up by 6 points or 0.03 percent at 19553 levels. The indication from Asian markets is positive. Indian stock market indexes will likely open in the green and trade above their neutral lines today.
U.S. Stock Market Indexes Update
The US stock market indexes ended mixed on Friday, Dow Jones and S&P 500 gained 0.33 percent and 0.18 percent respectively while Nasdaq pared early gains and closed slightly negative by only 0.02 percent. The market sentiments were upbeat after the release of monthly job reports on Friday. August’s job reports showed an increase in jobs, but wage growth slowed as the unemployment rate rose unexpectedly in August.
Another report from the ISM showed the manufacturing activity index rose better than the expectation in August. The US 10-year Treasury yields fell to 4.075% after the job report but later climbed to 4.186% and dragged the Nasdaq index at the close on Friday. The US markets will remain closed on Monday on account of Labor Day
European Stock Market Indexes Updates
European stock market indexes mostly ended lower on Friday, as eurozone manufacturing activity data prolonged into contraction. The Eurozone HCOB/S&P Global manufacturing purchasing managers’ index (PMI) data came at a three-month high of 43.5 in August, up from 42.7 in July, but remained in contraction. The report showed there is a significant drop in new orders is a major concern.
The data from Nationwide showed the housing market in the UK fell sharply in the last 14 years. European stocks reacted negatively after U.S. nonfarm payroll data came in higher than expected but the downside remained capped, as the US unemployment rate grew unexpectedly. The major indexes CAC and DAX declined by 0.27 percent and 0.67 percent respectively while the UK’s FTSE closed higher by 0.34 percent on Friday.
Indian Stock Market Indexes
Indian stock markets rallied on Friday following positive cues from Asian markets and strong domestic economic data. The global market sentiments were positive, as the U.S. PCE inflation was in line with expectations and expansion in China’s manufacturing activity in August.
On the domestic front, better-than-expected Manufacturing activity and GDP data boosted investor’s mood on Friday. The market breadth was strong with advance decline indicating a positive ratio of 2:1 at the close. Both FIIs and DIIs were buyers in the Indian equity cash segments, FIIs bought shares worth Rs 487.94 crore while DIIs purchased Rs 2294.93 crore on Friday.
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