Asian markets traded lower, while the US stock market indices closed in the red overnight ahead of key economic data.
Market participants appeared to be cautious ahead of Powell’s two-day congressional testimony later this week, the European Central Bank’s policy decision, and the Labor Department’s crucial February jobs report.
China’s “Two Sessions” meeting got underway today and the country has set an ambitious GDP growth target of “around 5%” for 2024 and also expects the inflation rate to increase to “around 3%.”
On Monday, the Indian stock market indices extended gains for the fourth consecutive session, ending at their fresh closing highs.
The Sensex gained 66.14 points, or 0.09%, to close at 73,872.29, while the Nifty 50 settled 27.20 points, or 0.12%, higher at 22,405.60.
“Given the positive domestic sentiments, we expect market momentum to continue over the next few days with Nifty likely to move towards 22,500 zones. However, the broader market could remain under pressure given the profit booking and adverse advance-decline ratio. Hence, we suggest traders be very selective in mid/small caps,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower as China’s “Two Sessions” meeting got underway. Japan’s Nikkei 225 fell 0.34%, trading below the 40,000 mark, while the Topix declined 0.3%. South Korea’s Kospi dipped 0.26% and the Kosdaq dropped 0.52%. Hong Kong’s Hang Seng index indicated a weaker opening.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — March 5
Gift Nifty Today
Gift Nifty was trading lower around the 22,487 level, indicating a muted start for the Indian stock market indices.
Wall Street
US stock market indices backed off from record highs to end lower on Monday as US Treasury yields ticked higher ahead of key jobs data and Federal Reserve Chair Jerome Powell’s congressional testimony later in the week.
The Dow Jones Industrial Average declined 97.55 points, or 0.25%, to close at 38,989.83, while the S&P 500 fell 6.13 points, or 0.12%, to 5,130.95. The Nasdaq Composite ended 67.43 points, or 0.41%, lower at 16,207.51.
Investors will watch out for Powell’s testimony and the jobs data for any clarification on the timing and extent of the Fed’s expected policy interest rate cuts this year.
China GDP Growth
China will set a gross domestic product (GDP) growth target of around 5% for the year, one of its lowest in decades and in line with last year, according to a copy of the government’s annual work report seen by Bloomberg News. Premier Li Qiang will officially unveil the annual GDP target while delivering his first work report to the national parliament, which kicks off Tuesday.
Read here: China sets 5% GDP growth target for 2024 amid push to boost confidence
US Treasury Yields rise
US Treasury yields rose on Monday ahead of US Fed Chair Powell’s testimony and jobs data for February. The benchmark 10-year yields were up 4 basis points (bps) on the day at 4.217%. Two-year yields rose 7 bps to 4.604%.
Oil Prices
Crude oil prices held a decline amid signs of macroeconomic weakness in China. Brent crude, the global benchmark, was down 0.07% at $82.74 a barrel, while the US West Texas Intermediate crude fell 0.23% to $78.56 a barrel after slipping 1.5% on Monday, the biggest loss in more than a week.
(With inputs from Agencies)
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Published: 05 Mar 2024, 07:12 AM IST