stock market india
Indian equity benchmarks crashed on Monday, extending losses since late Friday and breaking a nearly five-week bull run as safe-haven dollar-dominated global trades, as most central banks continue to raise rates. are ready.
Minor easing by China only highlighted troubles in its asset market, and sharp indications from major central bank policymakers, even at the risk of an economic collapse, are hurting investor sentiment.
The 30-share BSE Sensex index fell over 800 points, and the broader NSE Nifty index lost over 1.5 per cent.
Global stocks slipped on Monday, and the dollar extended its climb as concerns about the US interest rate outlook dampened risk appetite, with the Federal Reserve raising rates by 75 basis points to nearly 50 percent. Of.
Investors are eyeing Federal Reserve Chairman Jerome Powell’s speech at the end of the week in Jackson Hole to headline many policymakers, and the risk is that he won’t meet investor expectations for a weak pivot on policy. .
Major European markets were down, and the STOXX index of the 600 biggest stocks fell 0.97 percent as investors feared scary signals from policymakers at the European Central Bank (ECB).
According to Bundesbank president Joachim Nagel, rates on the ECB should continue to rise even though a recession in Germany is becoming more likely as inflation will remain uncomfortably high until 2023.
Concerns that a three-day suspension of European gas supplies later this month could exacerbate the energy crisis caused the euro to fall below par against a stronger dollar on Monday and hit a five-week low.
However, China stands as an exception to the dire trend, as the Chinese central bank on Monday cut key lending rates by 5 to 15 basis points to stabilize a faltering economy and a stressed asset market.
The yuan fell to a 23-month low as concerns over China’s economy weighed on stocks in the sector.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.9 per cent despite a gain of 0.7 per cent by Chinese blue chips.
Japan’s Nikkei fell 0.5 per cent and South Korea’s KOSPI fell 1.2 per cent, though helped by the recent dramatic reversal of the yen.
With S&P 500 futures down 1 per cent and Nasdaq futures down 1.35 per cent, it appears the downward trend in US markets will continue.
The S&P 500 ended last week down 1.2 percent and has consistently failed to break above its 200-day moving average near 4,320.
The current climate of global concern has strengthened the US dollar as the safest haven, rising to 108.44 against a basket of currencies. It experienced its biggest performance last week since April 2020 with a growth of 2.3 per cent.
“If the August flash PMI for major economies reflects a contraction in economic growth or activity, the USD could track above 110.00 this week,” Joseph Caperso, head of international economics at CBA, told Reuters. ” Tuesday
“We also expect Powell to deliver a scathing message about inflation, which is in line with recent comments from other Fed officials who are backing the USD,” he said.
Oil prices were also under pressure amid consultations between the United States and the European Union over Iran’s response to the latest nuclear deal proposal, along with concerns over global demand and a higher dollar.
Brent was down $1.64 at $95.1 while US crude was down $1.77 at $89.45 a barrel.