Sensex Today | Share Market Live Updates : Stocks in Asia were mixed as positive sentiment from another record session in the US was offset by wage talks in Tokyo, with early indications in favor of a Bank of Japan pivot.
Equity benchmarks in Hong Kong rose at the open, with the Hang Seng China Enterprises Index on the brink of surging 20% from its low. The S&P 500 and a gauge of global equity index closed at fresh records as traders held on to Federal Reserve rate cut bets following a stronger-than-expected US inflation print.
Stocks in Japan reversed earlier gains and the yen strengthened after Mainichi newspaper reported Toyota Motor will meet its labor union’s wage-hike demand in full. Investors are on the lookout for union pay deals this week to determine whether pay increases will be strong enough for the BOJ to raise interest rates as early as next week.
Treasuries steadied after drifting lower following a $39 billion sale of 10-year notes. A Bloomberg dollar gauge was little changed after rising for the first session in March. Australian 10-year yields gained in early Wednesday trading.
The relative sense of calm in the face of a strong inflation print was unusual. In fact, the advance in stocks marked a break from how stocks have traded on CPI days since the Fed started lifting rates. An S&P 500 move of 1% or more has only happened on a handful of occasions on the day of the CPI release since March 2022. Most of the time, however, gains were on the back of lower — not higher — core inflation.
On Wall Street, the S&P 500 registered another record high, buoyed in part by a surge in Oracle shares. The Dow Jones Industrial Average rose 235.83 points, or 0.61%, to 39,005.49, the S&P 500 gained 57.33 points, or 1.12%, to 5,175.27 and the Nasdaq Composite increased 246.36 points, or 1.54%, to 16,265.64.
In Europe, the STOXX 600 index closed up 1% at a record, while the broad FTSEurofirst 300 index rose 19.77 points, or 0.99%
The S&P 500 will deliver stronger-than-expected earnings in 2024, powered by resilient economic growth and artificial intelligence breakthroughs, according to Bank of America Corp. strategists — who are now among Wall Street’s most bullish profit forecasters.
In other markets, oil advanced early on Wednesday after an industry report indicated stockpiles in the US decreased by 5.5 million barrels last week. Gold is little changed after snapping nine days of record-breaking gains following the CPI print.
Sensex Today Live : February inflation remains steady at 5.1% but food inflation up
Sensex Today Live : In February, Consumer Price Index (CPI)-based inflation declined by one basis point to 5.09%, compared to 5.1% in January 2024. This information was reported by the statistics ministry on Tuesday.
Despite this slight decrease, February inflation remained above the central bank’s target of 4%, but still within its tolerance range of 2-6% for the sixth consecutive month. Notably, prices of food and beverages continued to rise, remaining above 7% for four consecutive months. This upward trend was driven by increases in the prices of eggs, meat, fish, and vegetables. However, other primary categories such as clothing, footwear, housing, and transport experienced marginal easing.
In comparison, in February 2023, inflation had exceeded the upper tolerance band, reaching 6.44%. Subsequently, inflation rates stood at 5.5% in November 2023 (up from 4.87% in October) and 5.02% in September 20231. The economic landscape continues to evolve, and policymakers closely monitor these fluctuations to make informed decisions. (Read the full story here.)
Sensex Today Live : What to expect from Indian stock market in trade on March 13
Sensex Today Live : The Indian stock market indices, Sensex and Nifty 50, are likely to sart on a flat-to-higher note on Wednesday, influenced by the gains in global counterparts. The Gift Nifty trends also suggest a slightly positive kick-off for the Indian benchmark index. The Gift Nifty was observed trading around the 22,460 mark, a premium of more than 10 points from the Nifty futures’ last close.
On Tuesday, the domestic equity benchmark indices concluded the volatile session with a slight upward tilt. Nifty 50 exhibited a neutral candlestick pattern on the daily chart following a bearish engulfing, indicating persistent bearish pressure in the market.
Deepak Jasani, Head of Retail Research at HDFC Securities, stated, “The bearish Evening star pattern formed in the previous session has not been invalidated yet. Nifty is now expected to hover in the 22,224 – 22,526 range for the near term. The unfavorable breadth data is causing concern among investors and traders.” (Read the full story here.)
Sensex Today Live : Eight key things that changed for market overnight – Gift Nifty, US inflation to oil prices
Sensex Today Live : On Wednesday, the domestic stock market indices are projected to start on a higher note, influenced by encouraging signals from global markets. Asian markets were seen trading positively, and US stock indices closed significantly higher the previous night. Despite the persistent inflation data, the anticipation of interest rate reductions by the US Federal Reserve in the upcoming months has not deterred investors.
On Tuesday, the Indian stock market indices concluded a volatile trading session with a slight upward trend. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, warned that the broader market is likely to continue experiencing discomfort due to overvaluation and SEBI’s warning signals. He added that the obligatory mutual fund disclosure format from SEBI, which will provide insights into the funds’ stress situation and is due by March 15, is contributing to the existing worries. As a result, he anticipates that the volatility in midcap and smallcap could restrain the benchmark indices. (Read the full story here.)
Sensex Today Live : Global peers strengthen, Gift Nifty indicates markets poised for strong start
Sensex Today Live : After a subdued showing on Tuesday, markets looked primed to start on a positive note on Wednesday, on the back of the overnight record high close in the US market, and a stronger showing in Asian peers.
The trend was visible in the Gift Nifty futures, which was trading at 22,459.50, more than 120 points ahead of Nifty 50’s Tuesday close at 22,335.70.
Asian shares notched seven month highs on Wednesday, on the back of record peaks on Wall Street, as investors mostly shrugged off slightly hotter-than-expected U.S. inflation, betting it won’t derail interest rate cuts expected by the middle of the year.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% to its highest level since early August. The Hang Seng advanced 0.4% to 3-1/2 month highs.
Tokyo’s Nikkei was steady and focus in Japan is on springtime wage negotiations underway this week, with pay hikes seen encouraging an exit from negative interest rates perhaps as early as next week.
U.S. Treasury yields rose after the reading, with two-year yields finishing the New York session 6.5 basis points higher at 4.599% and 10-year yields climbing 5.1 bps to 4.155%. Early trade in Tokyo was steady.
South Korean shares rose for a second straight session on Wednesday, with Samsung Electronics leading the gains after Reuters’ report on its high-end chip production plan. The benchmark KOSPI rose 14.91 points, or 0.56%, to 2,696.72 by 0050 GMT, building on its 0.83% gain on Tuesday.
Australian shares inched higher on Wednesday, as the gains in financials offset a decline in commodity stocks. The S&P/ASX 200 index rose 0.2% points to 7,729.20 by 0025 GMT. The benchmark rose 0.1% in the previous session.
In commodities, higher yields yanked gold from near record levels and it was last at $2,157 an ounce. Crude futures have been rangebound for several weeks. Brent was last 0.5% stronger at $82.36 a barrel.
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