Tag: Stock market

Asian stocks rally as US shares near fresh record

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares in Asia rose Friday after an upbeat day on Wall Street following jobs data that supported the case for US rate cuts.

Equities in Japan, South Korea and Australia climbed alongside futures for Hong Kong. US contracts also drifted higher after the S&P 500 index gained 0.5% to trade less than 1% away from its all-time high on Thursday. The Nasdaq 100 index rose 0.2%.

Treasuries held a Thursday rally as Australian and New Zealand government bonds played catch-up, edging higher in early Friday trading. The US 10-year yield edged four basis points lower to 4.45% on Thursday, supported by a successful $25 billion sale of 30-year US bonds.

Initial applications for US unemployment benefits rose last week to the highest level since August, topping estimates, with cooling in the jobs market supporting the case for interest rate cuts. Fed Bank of San Francisco President Mary Daly said rates are currently restraining the economy, but it may take “more time” to return inflation to their goal.

“Time will tell whether it’s a one-off or part of a genuine cooldown in the labor market,” said Chris Larkin at E*Trade from Morgan Stanley. “Investors may have adjusted to the idea of the Fed waiting until September to cut interest rates, but that doesn’t mean they’re comfortable waiting indefinitely.”

Emerging market currencies extended gains against the greenback, which was steady after weakening Thursday as US yields fell. The dollar’s move failed to lift the yen after trading flat Thursday and was little changed early Friday at around 155 per dollar.

The pound was little changed after a Thursday rally that came despite growing confidence the Bank of England may soon begin loosening policy.

Data set for release in Asia Friday includes industrial output for India, and the first-quarter current account balance for China. New loans and money supply data for China may also be released as early as today.

Elsewhere, JPMorgan Chase & Co. said it was on track to include India in its emerging market debt index from June, a move that is expected to drive inflows from global investors. Meanwhile, Oversea-Chinese Banking Corp. offered S$1.4 billion ($1 billion) to buy the remaining stake in Great Eastern Holdings Ltd. that it does not currently own, in an effort to solidify its wealth management leadership position.

Oil extended gains into a third day as key technical levels provided a floor for losses while investors digested a mixed US inventories report. Gold traded little changed after jumping more than 1% on Thursday. Bitcoin climbed above $63,000.

US Rebound

To Doug Ramsey at Leuthold, another 10% gain in the S&P 500 isn’t out of the question, at least statistically. He analyzed 80 years of data on bull-market rallies, focusing on those that happened when unemployment was this low and the economic cycle this mature. If the current rally meets the prior records for length and height, the S&P 500 would end the year at 5,705.

Apple Inc.’s stock climbed as Bloomberg News reported the company will deliver some of its upcoming artificial-intelligence features this year via data centers equipped with its own in-house processors. Nvidia Corp. led losses in chipmakers.

Blackstone Inc. President Jon Gray said economic growth will slow as stubborn inflation weighs on the Fed’s ability to begin lowering borrowing costs.

“We see a deceleration of growth,” Gray said at the Macquarie Australia Conference in Sydney on Thursday. “Central banks will be slow on the cutting of rates, because they don’t want to see a rise of inflation,” he said. “The Fed will be patient, they’ll have the opportunity to cut once this year,” he added.

If the economy is slowing, unemployment rising, inflation receding, and the Fed is expected to cut rates, there will be plenty of buyers for US Treasury notes and bonds, according to Joe Kalish at Ned Davis Research.

“But make no mistake. When conditions change, prices can change too – and quickly!”

Also Read: Trade Setup for May 10: Recent swing low for the Nifty back in focus after breach of 22,000

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stock Market Highlights | Nifty 50 holds on to 22,000, Sensex rises 260 points, Midcap index outperforms

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stock Market Highlights | The stock market concluded today’s session with fluctuations but managed to maintain a stable range, with the Nifty index holding above the 22,000 mark. Midcap stocks notably outperformed their larger counterparts, with the Midcap Index rising by 1% while the Nifty managed only a 0.4% increase.

Sensex rose by 260 points, closing at 72,664, while the Nifty gained 98 points to settle at 22,055. However, the Nifty Bank slipped by 67 points, ending the day at 47,421, even as the Midcap Index saw a significant rise of 423 points, closing at 49,532. Sensex, Nifty 50 snapped a two-week gaining streak, recording the largest weekly fall in two months.

BPCL emerged as the top gainer on the Nifty, up by 4%, driven by strong Q4 earnings that outperformed its Oil Marketing Company (OMC) peers. Asian Paints saw a rise of over 2% following short covering triggered by positive management commentary. Hero MotoCorp extended its gains from Thursday on the back of robust Q4 commentary, registering a 2% increase.

Cipla’s mixed Q4 earnings led to a 4% decrease from its highs, while Bank of Baroda reported an increase in slippages, resulting in a 3% decline. On the other hand, Polycab surged to a record high, up by 7% after its Q4 earnings surpassed estimates. Manappuram and Muthoot rose by 5% each following clarifications on an advisory issued by the RBI. Dr. Lal’s Path Labs reported healthy Q4 results, gaining more than 5%.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Terrible Thursday! Sensex falls 1,000 points; Investors lose ₹7 lakh crore; What spooked the market?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sensex slipped 1,062 points to settle at 72,404 amid an across-the-board sell-off on Thursday. The frontline index Nifty 50 tanked 345 points to 21,958, slipping below the psychological level of 22,000 for the first time since April 19, reflecting weak investor sentiment on Dalal Street.

The muted cues from the fourth-quarter earnings of large-cap companies and uncertainty surrounding the outcome of the general elections have further dampened investor sentiment. The volatility index, India VIX, also jumped 6.56% to 18.20 levels, rising for the eleventh consecutive session.

Domestic stocks eroded nearly ₹7 lakh crore worth of investor wealth on Thursday. Data showed investor wealth, as suggested by the combined BSE market capitalisation fell to ₹393.73 lakh crore in today’s trade.

Index heavyweights Larsen & Toubro (L&T), ITC, HDFC Bank were the top contributors to the market crash.

Experts view

“The fall in the market is primarily attributed to the prevailing uncertainty surrounding the general elections. This uncertainty has significantly bolstered India’s volatility gauge, the India VIX, reaching its 52-week high at 19, indicative of market apprehension,” said Arvinder Singh Nanda, Senior Vice President at Master Capital Services.

In the global context, Nanda said that a subdued sentiment has developed due to the hike in crude oil prices, which has aggravated inflationary concerns. “This escalation comes amidst the US Federal Reserve’s decision to undertake any interest rate cuts, which could potentially contribute to further market decline. Additionally, Nifty prices are currently trading below their 55-day EMA which has served as key support in the past.”

With a voter turnout ratio of 65.68%, slightly lower than in 2019 for the same seats except Assam, investors have turned nervous about the BJP’s expected seat count.

“We expect this volatility to continue in the near term in the absence of any major positive trigger. Now till Nifty holds below 22000 zones, weakness could be seen towards 21700,” said Siddhartha Khemka of Motilal Oswal.

Continued selling by Foreign Portfolio Investors (FPIs) has weighed on the overall market sentiment, as they have been net sellers so far this year. FIIs offloaded Indian equities worth ₹2,854 crore on May 8.

Tech view

The Nifty 50 index has been in a larger range movement of around 22800-21750 levels in the last couple of months and is currently nearing a lower range and also a crucial support around 21750 levels for the short term. Having bounced back decently from this support in the past, there is a higher probability of a minor upside bounce from this lower support in the coming sessions, said Nagaraj Shetti, senior technical research analyst at HDFC Securities.

Shetti said that Nifty’s immediate resistance should be at 22100 levels.

According to Rupak De of LKP Securities, bears remained at the helm as the index fell sharply following a breakdown below 22200, where significant Put writing had been visible.

“On the day of mayhem, the index kept breaking the supports as buyers did not buy the dips. The trend looks extremely weak with a possibility of a further fall in the near term. On the higher end, immediate resistance is visible at 22200; the market might remain sell on rise until it stays below 22200,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bond losses extend to Asia as stocks tread water

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian bonds fell early Thursday, echoing selling pressure in Treasuries in the prior session that supported the dollar. Equities in the region opened mixed after a flat day on Wall Street.

The 10-year benchmarks for Australia and New Zealand rose by around four basis points, mirroring the increase in Treasury yields of the same maturity Wednesday, which came as a $42 billion sale of 10-year bonds saw mild demand. US notes were little changed in Asian trading.

Japanese bonds also dipped as traders mulled a hawkish-sounding summary of opinions from the central bank’s April meeting. Bank of Japan members discussed the potential to cut bond purchases as well as the path for future rate hikes.

The yen was slightly stronger Thursday after an index of greenback strength steadied following a third session of gains Wednesday.

The Japanese currency had earlier weakened to a weekly low as some traders began to worry about a new Asian currency war. Japan’s top currency official, Masato Kanda, said the country would be ready to take appropriate action when necessary but refrained from confirming official support in recent weeks.

Shares in Japan swung between gains and losses, while stocks in Australia and South Korea edged lower. US futures were steady after the S&P 500 and Nasdaq 100 indexes ended Wednesday largely flat, weighed down by losses in megacaps following a string of underwhelming corporate updates.

“All of these ingredients create a perfect recipe for an excuse for investors to take a step back after the recent bounce and reassess things,” said strategists at Bespoke Investment Group.

US-listed shares in Arm Holdings PLC fell as much as 10% in late trading following a tepid annual forecast. Intel Corp. shares also dropped after the US revoked licenses that allowed the firm to sell chips to Huawei Technologies Co. Airbnb Inc shares fell in post-market trade following signs of slowing growth.

In Asia, data set for release includes April trade data for China, where new lending and money supply figures could also be released as early as today. Malaysia will hand down a monetary policy decision, while markets in Indonesia are closed. Elsewhere, Japan’s latest wage figures showed pay gains have now lagged inflation every month for two years.

Investors will also be keeping a close eye on troubled Chinese developer Country Garden Holdings Co., which is seeking help to pay interest due Thursday, said people familiar with the matter.

Investors Hesitant

Lack of conviction among investors to buy into the recent bounce in US stocks shows the market is far from turning fully bullish, said Citigroup Inc. strategists. The recent unwind of short positions has left the S&P 500 close to one-sided net long, but investors appear hesitant to add to the existing bullish positions, a team led by Chris Montagu noted.

“Flows tell a story of limited enthusiasm with a trickle of new long positions and only marginal increase in risk appetite,” Montagu said.

Following a pullback last month, equities resumed their advance in early May as solid corporate earnings bolstered sentiment and speculation grew that the Federal Reserve will be able to cut rates this year. The recent rally brought the S&P 500 about 1% away from its all-time high.

Inflation figures due next week will offer fresh insights about the US economy after employment data out Friday showed the labor market is cooling. Fed Bank of Boston President Susan Collins signaled Wednesday that interest rates will likely need to be held at a two-decade high for longer than previously thought to damp demand and reduce price pressures.

“Despite the lack of good news on inflation, there is a silver lining for patient investors,” said Mark Hackett at Nationwide. “As the Federal Reserve extends the timeline for interest rate cuts, historical data shows that longer Fed pauses often correlate with better equity returns. This should give investors reasons to be optimistic.”

In commodities, West Texas Intermediate rose by the most in almost two weeks Wednesday. The Biden administration raised the price it’s willing to pay to refill the country’s emergency oil reserves, which have dwindled near the lowest in four decades. Gold prices fell for a second session, ending Wednesday 0.2% lower and leaving prices hovering around $2,310 per ounce.

Also Read: Trade Setup for May 9: Nifty remains on the edge ahead of weekly expiry as banks drag

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stock Market Highlights | Sensex, Nifty 50 remain weak, end at two-month low; Midcap index falls over 900 points

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stock Market Highlights | Sensex, and Nifty 50 remained weak today, ending at two-month lows as both frontline and broader indices saw declines of 1-2%. The Sensex dropped by 1,062 points to 72,404, while the Nifty fell 345 points to 21,958. The Nifty Bank index slipped 533 points to 47,488, and the Midcap Index plummeted by 927 points to 49,109.

While Asian Paints and L&T saw declines of 5-6% despite strong earnings, auto stocks, especially two-wheelers like Hero Moto and TVS, gained amidst the weak session, buoyed by positive earnings and outlooks. Stocks like Tata Power and UBL faced negative reactions to their Q4 results, each declining by 5%. Regulatory advisories added to the pressure, impacting sectors like finance, with Muthoot and Manappuram slipping by 4-8% due to an RBI advisory.

SBI closed higher despite the market downturn, rising 2% from its lows on the back of better-than-expected results. However, Piramal was the top midcap loser, dropping 9% due to weak Q4 earnings. Navin Fluorine reversed its gains from Wednesday, closing 5% lower.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian stocks languish at open as US rally falters

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Stocks in Asia struggled for direction following a sluggish US session, with investors split on whether the market can sustain this month’s rally given economic crosscurrents.

Equities in Japan fell while those in South Korea and Australia climbed. Futures for Hong Kong pointed to a flat open. Contracts for US stocks were little changed. The S&P 500 briefly hit 5,200 before paring its advance at the close.

Treasury 10-year yields were steady after falling on solid demand in a sale of three-year notes. The Bloomberg dollar index held on to gains recorded Tuesday. The yen inched lower, as US calls for caution on intervention added to expectations that the currency will face continued pressure. Japanese Finance Minister Shunichi Suzuki said the government stands ready to take all possible measures as needed.

In Asia, the focus will be on President Xi Jinping’s trip to Europe and how trade relations will develop from here. In another sign of geopolitical tensions between China and the West, the US has revoked licenses allowing Huawei Technologies Co. to buy semiconductors from Qualcomm Inc. and Intel Corp., according to people familiar with the matter.

Stocks across the world have been trying to make a comeback after April’s rout, with gains fueled by prospects of Federal Reserve rate cuts and solid earnings.

“We continue to see a path higher for stock prices as long as fundamental conditions remain stable and profit growth remains on a positive trend,” said Anthony Saglimbene at Ameriprise. “Elevated interest rates and sticky inflation, along with the Fed holding monetary policy at restrictive levels for longer than most expected at the start of the year, introduce some added risks.”

Despite resilient consumption and artificial-intelligence optimism, US economic growth slid last quarter while inflation stayed high. Fed Bank of Minneapolis President Neel Kashkari said Tuesday it’s likely the central bank will keep rates where they are “for an extended period of time” until officials are certain prices are on track to their target.

In commodities, oil was little changed as traders tracked tensions in the Middle East and a mildly bearish US stockpiles report.

US growth momentum is resilient, but likely slowing, and that could weigh on equities, which have decoupled from the Fed by assuming that an acceleration in growth was lying ahead, a JPMorgan team led by Mislav Matejka wrote.

The biggest buyers of US equities, American companies, are back in the market and ready to drive the next leg of the stock rally, according to Goldman. About a sixth of the $934 billion in estimated share repurchases this year are expected get executed in May and June, the firm’s tactical specialist Scott Rubner wrote.

Also Read: Trade Setup For May 8: Is the Nifty set for a retest of 22,000 on the downside?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stock Market Highlights | Sensex, Nifty 50 fail to hold intra-day gains led HDFC Bank, ICICI Bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stock Market LIVE Updates | Sensex, Nifty 50 closed today with minimal changes after a volatile session, erasing early gains as banking heavyweights struggled to maintain momentum. HDFC Bank and ICICI Bank continued to exert downward pressure on the market, contributing to the overall subdued sentiment.

BSE-listed companies witnessed a turnaround after three consecutive sessions of decline, adding approximately ₹2 lakh crore to their market capitalisation. The Midcap Index rose by 362 points to 50,036, showcasing the resilience of mid-sized companies.

Sensex fell marginally by 45 points to 73,465, while Nifty remained unchanged at 22,303. Nifty Bank, however, saw a decline of 264 points to 48,021, indicating weakness in the banking sector.

Stocks reacted sharply to earnings reports, with Dr Reddy’s Laboratories (DRL) and Voltas slipping, while Hero MotoCorp and Bharat Forge witnessed gains. L&T closed with gains, while Asian Paints slipped ahead of its earnings announcement.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian stocks climb after US gain on rates optimism

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Asian stocks rose in early trading, following Wall Street’s gains on optimism the Federal Reserve will start cutting interest rates this year. The yen dropped.

Japan’s benchmark Nikkei 225 climbed as much as 1.6% as the market reopened on Tuesday after a holiday. Australian shares rose 0.7%. The upward momentum came after the S&P 500 rose 1% and topped its average price over the past 50 days — a level seen by many chartists as key in maintaining the positive sentiment.

The yen fell after Japan’s top currency official Masato Kanda said that while authorities would take action in the event of volatility, there was no need for the government to intervene if the market is functioning properly.

Oil rose 0.5% in early Asia trading, while US stock futures were steady after Israel rejected a statement from Hamas that it had accepted a cease-fire proposal to end the fighting in Gaza.

The US equity benchmark rose above 5,180 on Monday. Nvidia Corp. and Tesla Inc. paced gains in megacaps. Micron Technology Inc. jumped on an analyst upgrade. Apple Inc. fell, with Warren Buffett revealing he’d cut his stake even after heaping praise on the iPhone maker. Treasury 10-year yields slid two basis points to 4.49%.

“Bulls will be looking to maintain their momentum after snatching last week from the jaws of bears,” according to Chris Larkin at E*Trade from Morgan Stanley. “This week is light on high-profile economic data, but heavy on Fed members hitting the speaking circuit. Traders will be dissecting any comments they make about potential rate cuts.”

In Asia, there’s renewed optimism for the bruised Chinese economy, with Beijing’s latest supportive policy stance helping to boost shares and the onshore yuan on their return from holiday on Monday. Battered assets are getting a second look as a combination of earnings recovery, policy support and cheap valuations lure investors.

Australia’s central bank is expected to keep its key interest rate on hold Tuesday, while reinstating a hawkish bias to acknowledge sticky consumer prices.

In the US on Monday, investors waded through remarks from some of the many Fed officials due to speak this week.

Fed Bank of Richmond President Thomas Barkin said he expects high rates to slow the economy further and cool inflation to the 2% target. His New York counterpart John Williams said eventually there will be rate cuts — but the decision on when will depend on the totality of the data.

More than 80% of the S&P 500 companies have now reported first-quarter earnings, and profit growth has easily surpassed “mediocre expectations,” according to Gina Martin Adams at Bloomberg Intelligence. The index is now on pace for a 6.5% earnings growth, almost double pre-season estimates of 3.75%, she noted.

The backdrop for stocks remains supportive, driven by healthy and broadening profit growth, inflation that will likely resume falling, a Fed that is more likely to cut than hike rates, and surging investment in artificial intelligence, according to David Lefkowitz at UBS Global Wealth Management.

A soft landing or a so-called no landing, where growth is resilient even as rates stay high, both remain possible for the US economy, the team led by Michael Wilson wrote in a note. This uncertain backdrop warrants an investment approach that can work as market pricing and leadership between groups of stocks gets whipsawed by the potential outcomes.

Also Read: Trade Setup for May 7: Is the rising VIX posing a threat to Nifty’s recovery?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stock Market Highlights | Sensex, Nifty 50 fall for third session straight, midcaps post worst day in two months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Stock Market Highlights | Sensex, Nifty 50 ended in the green for third session in a row. The market erased a market capitalisation of ₹10 lakh crore in three days. Broader markets underperformed benchmarks with the Midcap index posting worst day in two months. 88 of 100 midcap index stocks ended in the red.

Sensex fell 384 points to 73,512, while Nifty 50 slipped 140 points to 22,303. The Nifty Bank index fell 610 points to 48,285 and Midcap index 988 points to 49,674. The Fast Moving Consumer Goods (FMCG) basket rose tracking positive commentary. Nifty FMCG rose 2%. HUL, Britannia, Nestle, Marico, Godrej Cons and Dabur were the top FMCG gainers.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow