Trade setup for Thursday 15 June 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 market indexes are trading mixed on Thursday after the US Federal Reserve paused interest rate hikes. In Asia, the focus now will shift to China’s economic data, as the retail sales and industrial production output data are expected later in the day. Japan’s Nikkei is erased early gains and is trading marginally lower by 0.08 percent. Hang Seng and Shanghai are trading higher by 1.26 percent and 0.19 percent respectively. South Korea’s Kospi is trading lower by 0.06 percent at 7.05 am IST.
SGX Nifty is trading marginally lower by 17 points or 0.09 percent at 18818 levels. Asian stock market cues are mixed today, Indian stock market indexes are likely to start on a cautious note and would trade volatile.
U.S. Stock Market Indexes update
The US stock market indexes closed mixed after the Federal Reserve skip the June rate hike, as widely expected. Dow closed lower while S&P 500 and Nasdaq ended in the green after Fed emphasized further rate hikes to come, as inflation remains sticky. It was the first time Fed decided to keep the rate unchanged after its rate-hike cycle started in March 2022. The central bank was surprisingly hawkish by forecasting two further hikes in the pipeline in the current year.
Meanwhile, Treasury yields closed near the day high due to Fed’s hawkish outlook, forcing tech stocks to give up some intraday gains. Energy stocks fell after oil prices came under pressure due to a concern that further rate hikes would hit economic growth and oil demand.
The key US stock market index, Dow Jones closed lower by 232.79 points or 0.68 percent, while S&P 500 closed flat to positive, up by 3.58 percent or 0.08 percent. The tech-heavy Nasdaq though gave up early gains due to Fed’s hawkish outlook, but buying in dips supported the index to close higher by 53.16 points or 0.39 percent in the last hour.
European Stock Market Indexes Updates
European stock market indexes ended higher on Wednesday, as investors are looking ahead to the US Fed interest rate decision later in the day, with an expectation of a pause in rate hikes. Fresh data showed that the U.K. GDP grew by 0.2% in April, in line with expectations, with growth driven by services.
However, the upside remains capped as investors were cautious ahead of the monetary policy announcement from European Central Bank (ECB) on Thursday. Most of the sectors closed in the positive territory on Wednesday, with mining stocks leading the gains while travel and leisure stocks slipped.
The pan-European Stoxx 600 index provisionally ended 0.5 percent higher. The key European stock market indexes, CAC and DAX gained 0.51 percent and 0.49 percent respectively while UK’s FTSE was up by 0.10 percent on Wednesday.
Indian Stock Market Indexes
Indian stock markets closed higher for the third consecutive day on Wednesday. The domestic markets gained with the support of positive global cues and ease in WPI inflation in May. The upside remained capped as traders are closely looking for the US Fed interest rate decision due later in the day.
The market breadth was positive with advance decline indicating a ratio of 3:2 at the close. FIIs were the net buyers, they bought shares worth Rs 1714.82 crore while DIIs sold Rs 654.77 on Wednesday.
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