Pre Market Report- Cautious opening seen for Sensex on Asia weakness; US jobs data eyed
08/07/2016
Indian equity benchmarks are likely to witness a gap down opening on Friday tracking a bearish trend in markets across Asia as traders resort to a cautious approach ahead of the much anticipated US payrolls data for the month of June, set for release today, which may dictate the timing of the US Federal Reserve’s next interest rate hike. Officials from the Fed raised concerns over the slow pace of employment creation at their last meeting in mid-June, which was held before Britain’s EU referendum. Losses in the CNX Nifty Index Futures for July delivery, which fell by 0.29 per cent or by 24 points to 8,345.5 at 10:35 AM Singapore time, signal that Dalal Street may open lower today. The next big trigger for Dalal Street investors is the Q1 earnings season beginning next week, and the monsoon session of the Parliament starting from July 18 which could see the passage of the long pending GST bill, a game-changing tax reform. Meanwhile, HSBC has warned of a slight slowdown in the Indian economy in the ongoing fiscal and the next as weakness in global demand and risk aversion weighs. Asia’s third biggest economy may grow at 7.4 per cent in FY 2016-17 and 7.2 per cent in FY 2017-18, after a 7.6 per cent expansion last fiscal, it said. The 30-share Sensex on Thursday eked out modest gains, advancing 34.62 points or by 0.13 per cent to end at 27,201.49 with gains restricted by lingering global growth worries as traders weighed concerns over instability in the EU in the aftermath of Brexit.
Asian stocks fell on Friday as traders were jittery ahead of the US June jobs data which could have important implications for monetary policy in the world’s biggest economy. Data today may show that the May job creation at 38,000 may have been an anomaly with 178,000 jobs probably created in June. China’s Shanghai Composite and Hang Seng succumbed to significant losses while Japan’s Nikkei 225 was also trading lower, reversing earlier gains, as oil sank and demand for risky assets dimmed. Wall Street ended on a lackluster note on Thursday as benchmark S&P 500 dropped as a renewed oil rout weighed while traders awaited US jobs data for clues over Fed’s next policy decision in July. Meanwhile, US private sector companies added 172,000 jobs in June, up from 168,000 in May while jobless claims slid by 16,000 to the lowest level since mid-April at 254,000 last week, offering some good news over the US labour market recovery.
08/07/2016
Indian equity benchmarks are likely to witness a gap down opening on Friday tracking a bearish trend in markets across Asia as traders resort to a cautious approach ahead of the much anticipated US payrolls data for the month of June, set for release today, which may dictate the timing of the US Federal Reserve’s next interest rate hike. Officials from the Fed raised concerns over the slow pace of employment creation at their last meeting in mid-June, which was held before Britain’s EU referendum. Losses in the CNX Nifty Index Futures for July delivery, which fell by 0.29 per cent or by 24 points to 8,345.5 at 10:35 AM Singapore time, signal that Dalal Street may open lower today. The next big trigger for Dalal Street investors is the Q1 earnings season beginning next week, and the monsoon session of the Parliament starting from July 18 which could see the passage of the long pending GST bill, a game-changing tax reform. Meanwhile, HSBC has warned of a slight slowdown in the Indian economy in the ongoing fiscal and the next as weakness in global demand and risk aversion weighs. Asia’s third biggest economy may grow at 7.4 per cent in FY 2016-17 and 7.2 per cent in FY 2017-18, after a 7.6 per cent expansion last fiscal, it said. The 30-share Sensex on Thursday eked out modest gains, advancing 34.62 points or by 0.13 per cent to end at 27,201.49 with gains restricted by lingering global growth worries as traders weighed concerns over instability in the EU in the aftermath of Brexit.
Asian stocks fell on Friday as traders were jittery ahead of the US June jobs data which could have important implications for monetary policy in the world’s biggest economy. Data today may show that the May job creation at 38,000 may have been an anomaly with 178,000 jobs probably created in June. China’s Shanghai Composite and Hang Seng succumbed to significant losses while Japan’s Nikkei 225 was also trading lower, reversing earlier gains, as oil sank and demand for risky assets dimmed. Wall Street ended on a lackluster note on Thursday as benchmark S&P 500 dropped as a renewed oil rout weighed while traders awaited US jobs data for clues over Fed’s next policy decision in July. Meanwhile, US private sector companies added 172,000 jobs in June, up from 168,000 in May while jobless claims slid by 16,000 to the lowest level since mid-April at 254,000 last week, offering some good news over the US labour market recovery.
