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International Business Times
5 days ago
- Business
- International Business Times
Wall Street and Global Markets Rise as Weak Jobs Data Fuels Fed Cut Expectations
Global markets climbed for a second consecutive day on Tuesday, on optimism that the U.S. Federal Reserve could cut rates as early as next month. U.S. futures were trading higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 gaining 0.4%, and Nasdaq up by 0.4%. freepik In Europe, the STOXX 600 index was up 0.4% in early trade, while Asia's MSCI Asia-Pacific index outside Japan advanced 0.8%. South Korea's KOSPI jumped 0.8%, while Japan's Nikkei slipped 1.6%, partly due to a stronger yen. Chinese blue-chip stocks stayed flat. US markets rallied Monday as investors took favorably to better-than-expected earnings and rising expectations of a September rate cut. The optimism was due to a weaker job data report released on Friday that showed slowing growth of the US economy, leading to expectations that the Fed would step in to support the economy. Trade Moves by Trump Alarm Geopolitical Leaders US President Donald Trump Threatens To Increase India's Tariffs In Response To Ongoing Oil Trade With Russia. India strongly condemned the criticism and said it would continue to defend its economic interests. Trump also created a stir when he dismissed the head of the U.S. Bureau of Labor Statistics, which produces the jobs report. The announcement prompted questions about the politicization of government data and followed a lackluster jobs report on Friday. Compounding the unease is that Trump has the chance to nominate a new Federal Reserve governor after Democrat Adriana Kugler stepped down early from the Fed. Some analysts fear the development could impair future Fed decisions, with Trump already badgering Fed Chair Jerome Powell to cut rates. Investors Focus on Central Banks and Earnings. Expectations for a September rate cut now stand at 94%, up from 63% in late July, according to the CME FedWatch Tool. The Bank of England is also forecast to reduce interest rates this week, even as inflation remains stubbornly high in the UK. Investors also have earnings from Disney and Caterpillar to digest. On Monday, tech stocks like Nvidia, Alphabet, and Meta boomed. The AI tools supplier also upped its full-year revenue guidance on the back of strong demand. Commodities and Currency Market Update The dollar index was up 0.34%, having stabilized after two straight days of declines. The single currency was down 0.25% to $1.1543, and the dollar strengthened to 147.6 yen. OPEC+ supply boost sends Brent crude oil down 1% at $68.05 per barrel. Bitcoin inched 0.6% lower to $114,235, with gold bouncing back from profit-taking selling to trade just behind the precious metal at $3,375 per ounce.
Economic Times
01-08-2025
- Business
- Economic Times
Why stock market fell today: Sensex drops 586 points, Nifty below 24,600. Here are 6 reasons behind the selloff in Indian shares
Indian shares plummeted on Friday, with the Sensex and Nifty falling sharply due to global headwinds and U.S. tariffs on Indian exports. Persistent foreign fund outflows and a strengthening dollar further pressured the market. Pharma stocks also suffered following concerns over potential U.S. price regulations. Technical analysis suggests a further downside, with key support levels being closely watched by analysts. Tired of too many ads? Remove Ads 1) U.S. tariffs on Indian exports Tired of too many ads? Remove Ads 2) Persistent FII outflows 3) Weak global market cues 4) Dollar strength intensifies pressure Tired of too many ads? Remove Ads 5) Pharma stocks under fire 6) Technicals point to further downside Indian shares ended in the red on Friday, dragged down by a combination of weak global cues, sustained foreign fund outflows, and renewed trade tensions after the U.S. imposed sweeping new tariffs on dozens of countries, including BSE Sensex shed 585.67 points, or 0.72%, to close at 80,599.91, while the NSE Nifty slipped 203 points, or 0.82%, to settle at 24, are six key factors that drove the market downturn:Investor sentiment soured after U.S. President Donald Trump signed an executive order imposing a steeper-than-expected 25% tariff on Indian goods. The order affects nearly 70 countries, although India was spared from further penalties over its Russian defence and energy deals. Still, the protectionist move has heightened uncertainty around a possible US-India trade agreement."The Indian equity market extended its decline for a second day, pressured by renewed tariff threats and punitive duties that could undermine India's global trade competitiveness," said Vinod Nair, Head of Research, Geojit Institutional Investors (FIIs) have been consistent net sellers, offloading shares worth Rs 5,588.91 crore on Thursday alone. Over the last nine sessions, cumulative FII selling has crossed Rs 27,000 crore, triggering widespread risk aversion in domestic has been further dampened by disappointing Q1 earnings and the growing dominance of short positions. FIIs have built record bearish bets, with short positions in index futures rising to 90%, the highest since March 2023. The long-to-short ratio dropped to a mere 0.11 at the start of the August series, while the Nifty rollover rate for July slipped to 75.71% from 79.53% in June."Investor sentiment weakened further as FIIs now hold the second-highest net short position in derivatives, reflecting elevated caution," said Vinod Nair, Head of Research, Geojit markets led a broad global selloff on Friday as investors digested the impact of fresh U.S. tariffs and awaited key US jobs data. Equities in India's regional peers were under pressure, with the MSCI Asia-Pacific index (ex-Japan) falling 1.5%, bringing its weekly decline to around 2.7%.Japan's Nikkei slipped 0.6%, Chinese blue chips dropped 0.5%, and Hong Kong's Hang Seng index lost over 1%. South Korea and Taiwan also traded lower after the U.S. announced steep tariffs, including 25% on Indian exports, 20% on Taiwan's, 19% on Thailand's, and 15% on South Korea' downbeat sentiment extended to European equities, with the Stoxx 600 falling 1% in early trade and headed for its worst week since April. Wall Street futures also pointed to a subdued start, weighing further on investor risk appetite dollar index surged 2.5% during the week to climb above 100, marking a two-month high and its strongest weekly performance in nearly three years. The rally has exacerbated capital outflows from emerging markets, including India, and raised the cost of foreign debt."The sharp surge in the dollar index to 100 will nudge the FIIs to continue selling putting pressure on largecaps too. Investors can adopt a wait and watch strategy," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit shares came under pressure after the White House sent letters to 17 global drugmakers urging them to cut U.S. prescription prices to match international benchmarks. The letters also called for the adoption of a Most Favoured Nation (MFN) pricing model within 60 days, raising fears of increased regulatory scrutiny and margin Nifty Pharma index fell 3.3% on Friday, extending its losing streak to a third session and closing 2.9% lower for the week. Sun Pharma was the biggest drag on the Nifty 50, slipping 4.5% after Investec downgraded the stock to 'sell' from 'buy.' Other notable laggards included Aurobindo Pharma, Cipla, Lupin and Gland a technical perspective, the Nifty remains under pressure after failing to reclaim its 200-DMA on the hourly chart, despite a brief recovery on Thursday, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the index also remained below the 50-EMA on the hourly timeframe throughout Friday's session.'On the daily chart, it has broken below the recent consolidation support at 24,600. Sentiment remains weak, with the potential for the correction to extend towards 24,400–24,450. A further decline is likely if it slips below 24,400,' De Mishra, SVP – Research at Religare Broking, said the Nifty is now approaching its next crucial support at 24,450, and a breach of this level could trigger a retest of the long-term moving average — the 200-day EMA — near 24,180. 'On the upside, the 24,800–25,000 zone is expected to act as a strong hurdle. We maintain our cautious stance and continue to recommend a hedged approach with a negative bias until clear signs of reversal emerge,' he said.
International Business Times
29-07-2025
- Business
- International Business Times
Asian Stocks Decline on Growing Trade Deal Concerns, Oil Prices RIse
Asian stock markets dropped on Tuesday as investors grew concerned about the effects of a new U.S.-EU trade agreement. Although the deal averted harsher tariffs, Europe now faces a 15% levy—much higher than the previous 1–2%. Leaders in Germany and France cautioned that such measures could slow growth, pulling stocks and bond yields down across the region. freepik The MSCI Asia-Pacific index lost 0.8%. Japan's Nikkei fell 0.9%, while China's CSI 300 was flat. In Europe, stocks tried to rebound slightly after Monday's losses. Futures swapped hands with the EUROSTOXX 50, FTSE, and DAX, each 0.2% higher. Euro Struggles as Dollar Gains Strength The euro was little changed, at $1.1587, after declining 1.3% on Wednesday, its largest one-day decrease in two months. The dollar index climbed to 98.675, supported by investors unwinding short-dollar bets. The dollar was at 148.27 against the yen, slightly off the recent high. In the meantime, Wall Street held steady, boosted by optimism about earnings from large tech companies such as Apple, Meta, Microsoft, and Amazon. Futures on the Nasdaq gained 0.2%, and those for the S&P 500 ticked up 0.1%. The Nasdaq added 0.3% on Monday to reach a record high, and the S&P 500 ended with its sixth straight record close. Fed Rate Decision and Economic Data in Focus Investors are also keeping a close eye on the U.S. Federal Reserve meeting next week. The Fed is widely expected to leave rates steady at 4.25%–4.5%, with markets pricing a 97% probability of no change. Even so, some members of the Fed may press for a rate cut, particularly if there is a deterioration in economic data. GDP data due later in the week should show a 2.4% rebound for the second quarter after a 0.5% drop earlier this year. (too many job openings) on Tuesday and Friday's payroll report are critical in molding rate expectations. Oil Prices Rise, Gold Steady Oil prices rose slightly after President Trump gave Russia 10 to 12 days to make headway toward ending the war in Ukraine or suffer more severe oil-related sanctions. Brent crude was up 2.3 percent on Monday and traded at $69.90 a barrel on Tuesday, while U.S. crude closed at $66.60. The price of gold was unchanged at $3,315 an ounce.
India Today
18-07-2025
- Business
- India Today
Will Sensex, Nifty rally today after Wall Street closed at a record high?
Dalal Street is expected to open higher today after Wall Street closed at record highs overnight. The US market closed at record high as fresh data from the United States eased concerns about an economic slowdown in the world's largest economy.U.S. retail sales showed improvement in June, ending a two-month decline. At the same time, fewer Americans filed for jobless claims than expected, which suggested strength in the labour market. These signals boosted investor confidence, not just in the U.S. but across global NIFTY SIGNALS A POSITIVE STARTAccording to early morning data, Gift Nifty futures were trading at 25,182 points as of 8:30 am. This indicates that the Nifty 50 could open higher than Thursday's closing level of 25,111.45.'We can expect Nifty to find support between 25,020 and 24,940 and face resistance near 25,200 and 25,290 in the upcoming session,' said VLA Ambala, Sebi Registered Research Analyst and Co-Founder of Stock Market MARKETS FOLLOW GLOBAL CUESAsian markets were trading in the green early on Friday. The MSCI Asia-Pacific index outside Japan was up 0.7%. In the U.S., both the S&P 500 and the Nasdaq hit record closing highs on gains were driven by strong U.S. retail sales and a decline in weekly jobless claims, which eased some worries about a slowdown in consumer STILL FACING PRESSUREDespite the global cues, Indian markets have struggled this week. So far, the benchmark Nifty 50 has fallen 0.2% for the week. This follows two straight weeks of losses. Much of the pressure has come from a weak start to the earnings season, especially from major IT firms like Tata Consultancy Services and HCLTech, whose results failed to meet there was some relief on Thursday when Wipro posted better-than-expected results. The company saw improved client spending in parts of its Americas business. Following the results, its U.S.-listed shares rose 3.4%.Investors will be closely watching Reliance Industries on Friday. The company is set to release its first-quarter earnings report, which could have an impact on overall market VIEW: SUPPORT AND RESISTANCE ZONESAccording to analysts at Bajaj Broking, Nifty formed a bearish candlestick pattern in the previous session, marked by a lower high and a lower low. This shows signs of profit booking around the 20-day Exponential Moving Average (EMA).'The index has seen only a mild pullback, correcting about 50% of its previous upward move. This, combined with a time-based correction, points to a healthy trend. It is forming a higher base around the key support of 25,000,' said Bajaj added, 'For now, the index faces resistance around 25,250. A move above this level could push Nifty towards 25,350 and even 25,600 in the coming weeks. But if it fails to break this level strongly, we could see some sideways movement between 25,000 and 25,250. Key support lies between 24,900 and 25,100.'(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsMust Watch advertisement
India Today
08-07-2025
- Business
- India Today
Market opening: How will Sensex, Nifty react to Trump's tariff announcement?
Sensex and Nifty are expected to open flat on Tuesday as global markets digest a fresh wave of US tariff President Donald Trump has announced new 25% tariffs on imports from key trade partners, including Japan and South Korea, while also saying that a trade deal with India is close. The news has increased caution among investors, and traders are likely to stay watchful in the early hours of of 8:06 am, the Gift Nifty futures were trading at 25,495.5, suggesting that the Nifty 50 will start the day close to its previous closing level of 25,461.3. The flat indication shows that investors are still uncertain about how the new US trade actions will affect global August 1, the US is expected to enforce higher tariffs, unless agreements are made. So far, only the United Kingdom and Vietnam have finalised deals. India is still in talks with the US, and Trump has indicated that a deal is nearing completion, though no final agreement has been announced US president said on Monday that these tariffs are part of his strategy to rebalance trade relationships. However, the new levies are expected to increase costs on imported goods and may slow economic activity, at least in the short than the actual rates, the lack of clarity and the delay in finalising deals is likely to keep businesses on edge. This uncertainty could lead many companies to delay spending and investment Monday, Wall Street reacted negatively to the news. The S&P 500 Index fell by its largest margin in three weeks, adding to the nervousness in Asian markets. Early on Tuesday, Asian markets were mixed, with the MSCI Asia-Pacific index (excluding Japan) down 0.1%.Sensex and Nifty ended nearly unchanged on Monday. Gains in consumer stocks, especially Godrej Consumer, helped limit the downside in the broader market. Still, investor caution was visible. The benchmark indices are still around 3% below their record highs touched in late September Ambala, Sebi Registered Research Analyst and Co-Founder of Stock Market Today, said the market remains in an overall uptrend. However, the India VIX rose by almost 2%, which suggests that traders should proceed with caution in the short term. Ambala said volatility could remain high for the next few added that broader market performance is still strong on a quarter-over-quarter quarterly earnings updates start rolling in, there could be a lift in sentiment. She also mentioned that while a US-India trade deal may help improve mood, the benefits may be limited to specific sectors. For today's session, she expects the Nifty to find support between 25,330 and 25,180 and face resistance near 25,510 and 25, global trade tensions dominate the headlines, domestic factors like company earnings, foreign investor flows, and inflation data will also play an important role in shaping market direction over the coming weeks. Until then, investors may prefer to wait for clearer signals before making large bets.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsMust Watch advertisement
