09:01 (IST)
Markets expected to open flat
Aditya Agarwala, Senior Technical Analyst, Yes Securities, said, "The Indian markets are expected to open on a flat note with mild negative bias indicating a pause following significant gains in the past five trading sessions as the trend in the SGX Nifty indicates a gap-down open of 20 points. The entire Asian pack however is trading in the green. JAKARTA is leading the charge with gains of 2% followed by Straits, Nikkei and Hang Seng. Overnight the US markets ended in the green however, currently Dow Jones Futures is trading in the red with half a percentage cut.
"The Nifty ended yet another session on a strong footing with gains of 2.57%. Further, yesterday Index crossed its recent pivot high of 9890 making a higher high followed by a higher low of 8800 indicating a short term trend reversal in favor of the bulls. However, after a GAP down opening if bears can push the Nifty below the support of 9800 then profit booking can drag the Index lower to levels of 9730 which happens to be the trendline support. A further breakdown from this trendline support may extend the correction to levels of 9650-9600. On the flip side a sustained trade beyond 9900 will extend the uptrend to levels of 10,130-10,300. On shorter time frame Index has reached overbought territory suggesting minor profit booking maybe on cards before it resumes the uptrend,” Agarwala said.
08:59 (IST)
Stock markets global update
#CNBCTV18MArket | Here's what you need to know about global equities trading this morning & from overnight pic.twitter.com/yxZYiWK3tj
— CNBC-TV18 (@CNBCTV18Live) June 2, 2020
08:58 (IST)
SGX Nifty indicates flat market opening
#CNBCTV18Market | SGX #Nifty indicates muted opening on Dalal Street today.
— CNBC-TV18 (@CNBCTV18Live) June 2, 2020
SGX Nifty trading around 9,824 Vs Nifty June Fut's previous close of 9,791 pic.twitter.com/BhPD5IH0V7
08:57 (IST)
Markets may open flat
Deepak Jasani, Head Retail Research, HDFC securities, said, "The markets could open flat following a great run over the last four days. The Indian markets could open flat today despite higher Asian markets today and mildly higher US indices on Monday. US stocks posted gains on Monday as signs of economic recovery helped offset jitters over increasingly violent social unrest amid an ongoing pandemic and rising U.S.-China tensions. Investors also monitored Sino-American trade tensions and efforts in the US, and much of the world, to overcome the COVID-19 pandemic.The Institute for Supply Management said its manufacturing index climbed to 43.1 last month from an 11-year low of 41.5 in April.
"On the international front, Chinese government officials told major state-run agricultural companies to pause purchases of some American farm goods, including pork and soybeans, Reuters and Bloomberg News reported on Monday, citing people familiar with the matter.
"Moody’s Investors Service downgraded India’s credit rating to a notch above junk on Monday, citing a prolonged period of slow growth in Asia’s third-largest economy, rising debt and persistent stress in parts of the financial system. The change brings Moody’s rating into line with Fitch and Standard and Poor’s, both of which rate India BBB-, although they assign stable rather than negative outlooks.
"Stocks in Asia Pacific were mixed in Tuesday morning trade as tensions between the US and China continue to linger.
"Technically, Nifty has filled the downgap of 9731 made on May 04 and in the process has formed a bullish island reversal. 9889-9932 could be the resistance for the Nifty while 9584-9598 could be the support in the near term," Jasani said.
Stock market today LIVE Updates: SGX Nifty indicates gap-down opening, markets expected to open flat; Moody’s downgrades India’s rating to Baa3
New York: Asian stocks were set to come under pressure on Tuesday following a dip in Wall Street futures as US President Donald Trump vowed to use force to end violent protests in American cities, souring a previously upbeat market mood.
E-mini futures for the S&P 500 fell 0.38 percent and Japan’s Nikkei 225 futures lost 0.34 percent. Australian S&P/ASX 200 futures rose 0.15 percent in early trading.
The early indications came after major US stock indexes closed with gains of about 0.5 percent and continued to hover near three-month highs.
As Trump spoke in the Rose Garden of the White House on Monday, live television images showed police firing tear gas to dispel demonstrators in Lafayette Park, across the street.
“If American consumers were reluctant to come out of their COVID-19 lockdown cocoon fearing a secondary spreader, it’s unlikely they will feel any safer with military Humvees rolling down Pennsylvania Avenue,” Stephen Innes, Chief Global Markets Strategist at AxiCorp, wrote in a note to clients.
As Asian markets prepared to open, dozens of cities across the United States were under curfews with the National Guard deployed in 23 states and Washington, D.C.
The curfews followed protests over the death of George Floyd, a 46-year-old African American who died in Minneapolis after being pinned beneath a white police officer’s knee for nearly nine minutes.
The dollar index fell 0.4 percent, as risk appetite had increased on optimism that the worst of the global economic downturn caused by the coronavirus may be in the past.
The biggest concern for bond markets was growing US government debt with the benchmark 10-year Treasury notes yield rising to 0.677 percent from 0.644 percent on Friday.
“Most investors are saying (the protests) aren’t going to destroy the economy,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “It’s a roadblock, but it’s not as big as a pandemic.”
The protests were largely peaceful on Sunday but turned violent in the evening. On Monday, US President Donald Trump urged state governors to crack down on protests over racial inequality that have engulfed the nation’s major cities, as officials extended curfews to prevent a seventh night of looting and vandalism.
Markets were cheered by US manufacturing activity turning up slightly from an 11-year low in May. The report was the strongest sign yet that the worst of the economic downturn had passed as businesses reopened, though the recovery from the COVID-19 crisis could take years because of high unemployment.
Similarly, in the euro zone, the IHS Markit’s Manufacturing Purchasing Managers’ Index recovered slightly in May from April’s record low, although factory activity still contracted heavily.
Oil futures steadied on Monday despite US-China trade tensions with Brent up 1.3 percent to settle at $38.32 a barrel and US crude slipping 5 cents to $35.44 a barrel.
Spot gold added 0.8 percent to $1,739.75 an ounce. US gold futures gained 0.03 percent to $1,737.40 an ounce.
In the trade dispute, sources in China said the government had told them to halt purchases of US soybeans after Trump moved to eliminate special treatment for Hong Kong to punish Beijing over its new security laws for the city.
Though investors are closely watching for news on medical advances against the pandemic, the markets took in stride mixed news from Gilead Sciences Inc, whose shares fell about 4 percent . Gilead said that its antiviral drug remdesivir provided a modest benefit in patients with moderate COVID-19 given a five-day course of the treatment, while those who received the medicine for 10 days in the study did not fare as well.
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