Indian Markets could open Flat, in line with mixed Asian markets today and mostly Positive US markets on Sept 10
U.S. stocks finished mostly higher on Tuesday afternoon, with the S&P 500 and the Nasdaq Composite scoring 2 day consecutive gains ahead of Wednesday’s release of August’s CPI inflation report. A rally in the world’s biggest technology companies lifted stocks, offsetting a slew of cautious comments from American bank executives that sent financial shares tumbling.
Tuesday’s broad-based rally in U.S. government debt, fueled partly by ongoing worries about an economic slowdown, sent yields to their lowest closing levels this year. The 2-year rate finished at 3.608% or its lowest level since Sept. 12, 2022. Meanwhile, the 10-year yield fell to 3.643%, or its lowest closing level since June 1, 2023.
Crude oil futures settled Tuesday at their lowest levels in more than two years, with concerns about demand from China back in focus after another round of lackluster economic data. The Organization of the Petroleum Exporting Countries trimmed its forecast for crude demand growth for 2024 and 2025, feeding losses for oil even as Francine, a storm strengthening in the Gulf of Mexico, threatens significant disruptions to energy output.
Markets are currently pricing in 66% chance of the U.S. central bank cutting rates by 25 basis points, while 34% chance is ascribed for a 50 bps cut when the Fed delivers its decision on Sept. 18, CME FedWatch tool showed.
Asian stocks wobbled on Wednesday as investors gear up for U.S. inflation data and an eagerly awaited U.S. presidential debate, while oil prices loitered around three-year lows on concerns over a weak demand outlook.
Nifty index ended higher for the second day in a row on Sept 10. At close, Nifty was up 0.42% or 104.7 points at 25041.1. Nifty formed a high wave type doji on Sept 10. While Nifty rose for the second day, it ran into profit taking at higher levels. It needs to cross 25216 on the upside to build further gains. On downmoves, it could take support at 24867 in the near term.
