Indian markets could open lower, in line with lower Asian markets today and negative US markets on Sept 03.
U.S. stocks finished sharply lower on Tuesday to begin a historically tough month of the year for the market, as investors evaluated weak manufacturing data that reignited concerns over an economic slowdown.
A key barometer of U.S. factories was negative for the fifth straight month, signaling the manufacturing side of the economy is still in a deep slump that might not end until after the presidential election. The Institute for Supply Management’s manufacturing index edged up to 47.2% from an eight-month low of 46.8% but below the 47.9% expected from Dow Jones.
U.S. and global benchmark crude-oil prices fell sharply on Tuesday to turn lower year to date, as downbeat economic data from China and a weak reading on the U.S. manufacturing sector fed worries about a slowdown in energy demand. The possible easing of political unrest in Libya triggered worries about weak demand and oversupply. November Brent crude, the global benchmark, fell $3.77, or 4.9%, to settle at $73.75 a barrel on ICE Futures Europe. West Texas Intermediate crude for October delivery fell $3.21, or 4.4%, to settle at $70.34 a barrel on the New York Mercantile Exchange, the lowest front-month finish since Dec. 13, 2023.
Focus will turn to the key US jobs report due later this week. The data is expected to show payrolls in the world’s largest economy increased by about 165,000, based on the median estimate in a Bloomberg survey of economists.
Growth in China’s services sector activity slowed in August despite the summer travel peak, prompting some firms to cut staff amid concerns about rising costs, a private-sector survey showed on Wednesday.
The Caixin/S&P Global services purchasing managers’ index (PMI) slipped to 51.6 in August from 52.1 in July.
Asia-Pacific markets fell sharply on Wednesday, led by Japan’s Nikkei 225 after U.S. tech stocks sold off and weak U.S. economic data sparked recession fears.
Nifty rose for the fourteenth consecutive session on Sept 03. At close, Nifty was up 1.15 points at 25279.9. Nifty formed a small negative candle with a small lower shadow on Sept 03. Nifty once again remained in a narrow 86-point range through the day. Nifty could face resistance in the 25360-25400 band while 24972 could offer support in the near term.
