Trade setup for Thursday 31 Aug 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 mixed on Thursday, as investors remain cautious ahead of China’s August factory activity data, due later in the day. Japan’s Nikkei is trading higher by 0.45 percent, as the country’s retail sales jumped more than expected in July.
South Korea’s Kospi erased early gains and is trading lower by 0.27 percent, as the country’s Industrial production slipped 8% YoY basis in July, marking the 10th consecutive month of contraction.
Hang Seng is trading higher by 0.59 percent after closing almost flat in the previous session, while Shanghai is trading marginally lower by 0.11 percent. Straits Times is trading higher by 0.29 percent and Taiwan is trading lower by 0.41 percent at 7.10 am IST.
Gift Nifty is trading higher by only 4 points or 0.02 percent at 19360 levels. The indication from the Asian markets is mixed today. Indian stock market indexes are likely to open flat and would trade volatile due to monthly F&O expiry.
U.S. Stock Market Indexes Update
The US stock markets closed higher on Wednesday, as the economic data released showed further weakness, boosting the hope of the Fed’s pause in rate hikes in the September meeting. The ADP private payrolls report showed that employers added around 177000 jobs in August, well below the market expectations.
In another report, the second quarter GDP growth was revised downwards to 2.1 percent from the earlier estimates of 2.4 percent. The yield on the 10-year-old US Treasury note ended at 4.113% on Wednesday, from 4.125% late Tuesday.
The key US stock market indexes Dow Jones and S&P 500 gained 0.11 percent and 0.38 percent respectively, while Nasdaq closed at 0.54 percent on Wednesday.
European Stock Market Indexes Updates
European stock markets closed mostly lower on Wednesday, as US economic data and German inflation numbers hit the market sentiments. The latest data showed that the economic sentiment in the eurozone fell more than expected in August.
In the UK, data from the Bank of England showed mortgage approvals and consumer lending both declined in July due to higher interest rates. Energy stocks gained due to higher oil prices, while the wind farm developer Orsted fell sharply after it revealed that it could take a massive hit on its US operations.
The pan-European Stoxx 600 index ended 0.15 percent lower. The key European stock market indexes CAC and DAX ended lower by 0.12 percent and 0.25 percent respectively, while the UK’s FTSE was up by 0.12 percent.
Indian Stock Market Indexes
Indian stock markets ended the volatile session with an edge higher on Wednesday. The domestic markets witnessed profit booking in the last hour but managed to close in the green for the third consecutive day. Traders remain cautious ahead of the key economic data, both from domestically as well as US markets later this week.
The market breadth was positive with the advance decline indicating a 2:1 ratio at the close. FIIs were net sellers, they sold Rs 494.68 crore, while DIIs bought shares worth Rs 1323.24 crore on Wednesday.
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