Sensex & Nifty’s Slow Start Hints, GIFT Nifty Signals, Mixed Asian Cues

Stock Market LIVE Updates, Friday, September 6, 2024: Indian stock markets are expected to start slowly today. This is due to weak global signals as investors wait for important job data from the US.

In India, GIFT Nifty futures were trading at 25,176 around 7:40 AM. This is about 50 points lower than the Nifty futures’ last close of 25,236.

Asian Markets Update

Meanwhile, markets across the Asia-Pacific region mostly saw declines. Investors were digesting household spending data from Japan. Japan’s household spending for July rose just 0.1 percent from the previous year. This led Japan’s main stock index, the Nikkei 225, to start slightly below the flatline. The broader Topix index started the day down 0.42 percent.

South Korea and Australia

In South Korea, the Kospi index was down 0.8 percent, and the smaller Kosdaq was down 1.41 percent. On the other hand, Australia’s S&P/ASX 200 index saw a slight rise of 0.14 percent.

China and Hong Kong

Hong Kong’s Hang Seng index futures were trading at 17,431, which is lower than the Hang Seng Index’s last close of 17,444.3. Mainland China’s CSI 300 futures were at 3,254, just a bit lower than the last close of 3,257.76.

Global Equities and Oil Prices

On Thursday, the MSCI’s global equities index went down as investors processed mixed economic data. They were also looking ahead to a crucial US jobs report expected today. Oil prices stayed near 14-month lows because concerns about demand balanced out the draws on inventories.

US Hiring Data

Thursday’s data revealed that US private employers hired the fewest workers in over three years in August. The July numbers were also revised lower, possibly indicating a significant slowdown in the labor market.

US Services Sector

Data showed steady activity in the US services sector for August. The Institute for Supply Management’s non-manufacturing purchasing managers index was at 51.5 for the month, compared to 51.4 in July.

Market Reaction

Initially, the positive services data encouraged traders in the US, but optimism faded later in the day as investors awaited Friday’s job data.

On Wall Street, the Dow Jones Industrial Average dropped by 219.22 points, or 0.54 percent, closing at 40,755.75. The S&P 500 lost 16.66 points, or 0.30 percent, closing at 5,503.41. The Nasdaq Composite, however, saw a slight gain, rising 43.37 points, or 0.25 percent, to close at 17,127.66.

MSCI’s global stock index declined 0.22 percent, marking its fourth consecutive day of losses. Earlier in the day, Europe’s STOXX 600 index had also closed down by 0.54 percent.

Currencies and Bonds

In the currency market, the dollar had a mixed session as investors awaited Friday’s jobs report.

In the bond market, the yield on the benchmark US 10-year notes fell to 3.729 percent, down by 3.9 basis points. Meanwhile, the yield on the 30-year US bond dropped by 4.7 basis points to 4.0207 percent.

Energy Markets

Oil prices remained almost unchanged. Concerns about demand in the US and China, along with expected increased supplies from Libya, weighed on the market. This offset a significant withdrawal from US inventories and a delay in production increases by OPEC+ producers.

US crude ended Thursday session down by 0.07 percent, or 5 cents, at $69.15 per barrel, the lowest close since December. Brent crude settled at $72.69 per barrel, down 1 cent, making it the lowest close since June 2023.

Gold Prices

Gold prices went up as the US dollar and Treasury yields fell. The weaker labor market signs made investors consider a significant rate cut from the Federal Reserve.

Spot gold went up by 0.85 percent to $2,515.31 an ounce. US gold futures increased by 0.57 percent to $2,507.60 an ounce.

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