Pre Session- Gap down opening seen for Sensex as US jobs data eyed
04/09/2015
Indian equity benchmarks may witness a bearish opening on the last trading day of the week tracking weakness across most fellow Asian equities and a tepid finish at Wall Street overnight as traders stick to a cautious approach ahead of the much anticipated US jobs data for the month of August which may dictate the timing of a maiden Federal Reserve interest rate hike since 2006. Against the backdrop of sluggish global cues, coupled with weakness in the SGX CNX Nifty Index futures for September delivery which fell by 0.40 per cent or 31 points at 7,810.50 at 10:29 am Singapore time, Dalal Street is set to open lower today. Snapping a three-day losing streak, the 30-share Sensex jumped by 311.22 points or by 1.22 per cent to end at 25,764.78 on Thursday as the sharp losses suffered over the recent sessions offered a good bargain buying opportunity in stocks, at existing levels while positive cues from global markets, robust data from the US and a stable rupee also bolstered the lure for risk taking. Further, soft services data also boosted the case for an interest rate cut from the RBI later this month, supporting the Sensex. While the India services gauge climbed to 51.8 in August from 50.8 in July, optimism fell to the lowest level since 2005, signaling underlying softness in Asia's third biggest economy.
Most Asian markets were trading lower as investors were jittery ahead of the US payrolls numbers due later on Friday which may signal a strengthening labour market recovery in the world’s biggest economy, hence boosting the case for monetary tightening in the near-term. American employers probably added 220,000 jobs in August, up from 215,000 in July. Hang Seng logged modest gains, while markets in Korea & Singapore were treading water with a stronger yen driving down stocks in Japan. Stocks in mainland China remained closed due to a holiday. On Thursday, Wall Street closed little changed as investors weighed mixed US economic data and the ECB’s move to fine-tune its stimulus program amidst a deteriorating growth and inflation outlook for the struggling 19-member Euro area economy. The ECB raised the share of bonds it can buy to 33 per cent of each issue from 25 per cent and vowed to expand stimulus if a global financial rout continues to weigh on the region’s growth and inflation outlook. Meanwhile, the number of Americans who filed for claiming jobless benefits jumped to the highest level in eight weeks, up by 12,000 to 282,000 last week but a services gauge remained near the highest level in a decade at 59 in August, tad below July’s 60.3, but well above the neutral 50-mark.
04/09/2015
Indian equity benchmarks may witness a bearish opening on the last trading day of the week tracking weakness across most fellow Asian equities and a tepid finish at Wall Street overnight as traders stick to a cautious approach ahead of the much anticipated US jobs data for the month of August which may dictate the timing of a maiden Federal Reserve interest rate hike since 2006. Against the backdrop of sluggish global cues, coupled with weakness in the SGX CNX Nifty Index futures for September delivery which fell by 0.40 per cent or 31 points at 7,810.50 at 10:29 am Singapore time, Dalal Street is set to open lower today. Snapping a three-day losing streak, the 30-share Sensex jumped by 311.22 points or by 1.22 per cent to end at 25,764.78 on Thursday as the sharp losses suffered over the recent sessions offered a good bargain buying opportunity in stocks, at existing levels while positive cues from global markets, robust data from the US and a stable rupee also bolstered the lure for risk taking. Further, soft services data also boosted the case for an interest rate cut from the RBI later this month, supporting the Sensex. While the India services gauge climbed to 51.8 in August from 50.8 in July, optimism fell to the lowest level since 2005, signaling underlying softness in Asia's third biggest economy.
Most Asian markets were trading lower as investors were jittery ahead of the US payrolls numbers due later on Friday which may signal a strengthening labour market recovery in the world’s biggest economy, hence boosting the case for monetary tightening in the near-term. American employers probably added 220,000 jobs in August, up from 215,000 in July. Hang Seng logged modest gains, while markets in Korea & Singapore were treading water with a stronger yen driving down stocks in Japan. Stocks in mainland China remained closed due to a holiday. On Thursday, Wall Street closed little changed as investors weighed mixed US economic data and the ECB’s move to fine-tune its stimulus program amidst a deteriorating growth and inflation outlook for the struggling 19-member Euro area economy. The ECB raised the share of bonds it can buy to 33 per cent of each issue from 25 per cent and vowed to expand stimulus if a global financial rout continues to weigh on the region’s growth and inflation outlook. Meanwhile, the number of Americans who filed for claiming jobless benefits jumped to the highest level in eight weeks, up by 12,000 to 282,000 last week but a services gauge remained near the highest level in a decade at 59 in August, tad below July’s 60.3, but well above the neutral 50-mark.
