Pre Session-Bearish opening on the cards for D-Street; US jobs data eyed
06/05/2016
Indian equity benchmarks are set to witness a gap down opening on Friday tracking a bearish trend in fellow Asian peers as traders across the globe stick to a cautious approach ahead of the much anticipated US jobs data for the month of April which may offer further cues over the health of the job market recovery in the world’s biggest economy and perhaps dictate the timing of the next US Federal Reserve interest rate hike. Analysts expect April employment gain in the US to come in at a strong 200,000. Four regional Federal Reserve presidents have signaled that they are open to considering a rate hike in June, a move which could trigger an outflow of capital from emerging markets as investors turn risk averse. Losses in the CNX Nifty Index Futures for May delivery which fell by 0.43 per cent or 33 points at 7,730 at 10:19 AM Singapore time, also signal that Dalal Street may open lower today. Shares of Pfizer, Reliance Capital and Siemens will be in focus today as the companies unveil their Jan-March quarter earnings. On the economic front, the Lok Sabha has given the green signal to the all important Finance Bill as the NDA government moves to cut litigation, check tax evasion and simplify tax laws. Snapping a three-day losing streak, the 30-share Sensex on Thursday rallied by 160.48 points or by 0.64 per cent to end at 25,262.21 on value buying in beaten down stocks and predictions of a normal or an above normal monsoon rains this season.
Asian stocks fell as traders eyed the US jobs report for more clues on the American economy with investors turning jittery amid renewed fears of a June rate hike and prospects of slower growth in key economies. China’s Shanghai Composite fell prey to slim losses, Hang Seng declined sharply and Japan’s Nikkei 225 was languishing in the red as traders returned from a three-day holiday while speculating whether the Shinzo Abe government will take action to stabilize the yen. US stocks ended flat on Thursday amid caution ahead of April jobs data while traders digested data showing a surge in jobless claims to a five-week high of 274,000
06/05/2016
Indian equity benchmarks are set to witness a gap down opening on Friday tracking a bearish trend in fellow Asian peers as traders across the globe stick to a cautious approach ahead of the much anticipated US jobs data for the month of April which may offer further cues over the health of the job market recovery in the world’s biggest economy and perhaps dictate the timing of the next US Federal Reserve interest rate hike. Analysts expect April employment gain in the US to come in at a strong 200,000. Four regional Federal Reserve presidents have signaled that they are open to considering a rate hike in June, a move which could trigger an outflow of capital from emerging markets as investors turn risk averse. Losses in the CNX Nifty Index Futures for May delivery which fell by 0.43 per cent or 33 points at 7,730 at 10:19 AM Singapore time, also signal that Dalal Street may open lower today. Shares of Pfizer, Reliance Capital and Siemens will be in focus today as the companies unveil their Jan-March quarter earnings. On the economic front, the Lok Sabha has given the green signal to the all important Finance Bill as the NDA government moves to cut litigation, check tax evasion and simplify tax laws. Snapping a three-day losing streak, the 30-share Sensex on Thursday rallied by 160.48 points or by 0.64 per cent to end at 25,262.21 on value buying in beaten down stocks and predictions of a normal or an above normal monsoon rains this season.
Asian stocks fell as traders eyed the US jobs report for more clues on the American economy with investors turning jittery amid renewed fears of a June rate hike and prospects of slower growth in key economies. China’s Shanghai Composite fell prey to slim losses, Hang Seng declined sharply and Japan’s Nikkei 225 was languishing in the red as traders returned from a three-day holiday while speculating whether the Shinzo Abe government will take action to stabilize the yen. US stocks ended flat on Thursday amid caution ahead of April jobs data while traders digested data showing a surge in jobless claims to a five-week high of 274,000
