Trade setup for Thursday 13 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
The other Asian stock market indexes are mostly trading higher on Thursday as US inflation slows more than expected in June. The key Asian stock market indexes, Nikkei, Kospi, Hang Seng, and Shanghai are trading higher by 1.13 percent, 0.73 percent, 1.64 percent, and 0.63 percent respectively at 7.05 am IST.
Gift Nifty is trading slightly lower by 9 points or 0.05 percent at the 19554 level at this moment. The Asian and other global market cues are positive today. Indian stock market indexes are likely to open in the green territory and will trade above their flat line today.
U.S. Stock Market Indexes update
The US stock markets ended higher on Wednesday, as the June inflation data rose at the slowest pace since early 2021. The cooler-than-expected inflation reading pushed Treasury yields lower and boost the tech stocks amid optimism that the Fed might be less hawkish and July hike could be the last one.
Heavyweight tech stocks like Google, Microsoft, and Meta rallied after the Treasury yields fell sharply. The share prices of PepsiCo and Delta Air Lines closed lower, as profit booking was witnessed ahead of their quarterly earnings on Thursday before the opening bell.
Dow Jones gradually trimmed some early gains after the announcement of the inflation reading but ended higher by 0.25 percent while S&P 500 gained 0.74 percent. The teach-heavy Nasdaq jumped 1.15 percent on Wednesday.
European Stock Market Indexes Updates
European stock market indexes closed higher on Wednesday, as investors cheered the cooler-than-expected US inflation data, which raise hope that Fed could be less hawkish in tightening monetary policy. The Bank of England released its financial stability report before the bell Wednesday.
The share price of Zalando, a German online retailer gained 10% followed by Virgin Money of the UK which jumped around 11% after clearing the Bank of England stress test in the early noon on Wednesday. Meanwhile, European blue-chip index share Air-France-KLM was down around 4% after Deutsche Bank downgraded the share.
All major indexes in the region closed in the green territory, with mining stocks leading the gains. The pan-European Stoxx 600 index ended higher by 1.5% on Wednesday. The major European stock market indexes, CAC and DAX gained 1.54 percent and 1.45 percent respectively while UK’s FTSE jumped 1.80 percent.
Indian Stock Market Indexes
Indian stock markets snapped a 2-day winning streak and closed lower on Wednesday. The domestic markets opened higher but turn negative soon are opening. Traders remain cautious ahead of the domestic and US June inflation data, which was expected later in the day. IT stocks fell the most ahead of the TCS, and HCL Tech Q1FY24 results.
The market breadth was almost flat with the advance decline indicating a neutral ratio at the close. FIIs turned net sellers, they have offloaded shares worth Rs 1242.44 crore in the equity cash segments while DIIs bought Rs 436.71 crore on Wednesday.
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News you should read before the trade setup for today 13 July 2023
The data released on Wednesday by the Ministry of Statistics and Programme Implementation (MoSPI) showed that India’s retail inflation rose by 4.81% in June from 4.25% in May due to a rise in vegetable prices and fading away favorable base effect. The market estimation for the country’s inflation in June was 4.6%.
MoSPI has also shown that the country’s Index of Industrial Production (IIP) grew by 5.2% in May at three months high. The IIP data was initially reported at 4.2% in April, later revised at 4.5%. The market estimation of the IIP number for May was 5%.
The US retail and core inflation rose at a slower-than-expected pace in June. The US Bureau of Labor Statistics announced the Consumer Price Index (CPI) increased by 3.0% annually, down from 4.0% in May, while economists had forecast a rise of 3.1%. Meanwhile, core CPI cooled to 4.8% annually and 0.2% monthly, while the expectations were 5.0% and 0.3%.
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