Even though the government said the economy was stable and speculation grew that policymakers would have to stop raising interest rates to avoid a recession, the US stock market went up on Friday. Still, the market is still worried about what is going on in the Middle East, because the American air attack on Syria last weekend is likely to have an effect on Dalal Street and other markets around the world. The US dollar is trading sideways in early morning trade on Monday, with the Dollar Index trading flat. Still, the SGX Nifty has gone up by more than 100 points today. This is because crude oil prices dropped in the early morning, which showed that tensions in the Middle East were going down after the U.S. attack on Syria.
Here we list out important triggers that may dictate stock market today:
US Stock Market: On Wall Street, major benchmark indexes ended the day higher. The S&P 500 index increased by 0.56 percent, the Dow Jones increased by 0.41 percent, and the Nasdaq increased by 0.31 percent.
On why US stock market surged on weekend, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “Top US regulators said after a meeting Friday that while some banks are coming under stress, the overall financial system is still sound. Global authorities continued trying to instill calm in financial markets following the recent failure of some US regional lenders and the near-collapse of banking giant Credit Suisse Group AG before its government-brokered takeover by rival UBS Group AG.”
Market investors have abandoned betting that the Fed would hike interest rates in May in favour of betting that it will reduce rates as early as June, according to Marc Despallieres, even though Chair Jerome Powell has said that cuts are not his “base case.”
Crude Oil price in Focus: After the American air assault on Syria last weekend, the Indian stock market saw a significant sell-off after trimming early morning losses. As a result, any increase in crude oil prices would have been a signal of the Middle East’s rising geopolitical tensions. Meanwhile, crude oil prices are down roughly 0.10 percent in early trade, with WTI crude oil quoted at a little over $69 per barrel.
SGX Nifty today: The SGX Nifty began higher today at 17,037 points, signalling a solid start on Dalal Street (D-Street), and went on to an intraday high of 17,041. Nevertheless, profit-taking occurred quickly, and the index fell to an intraday low of 17,016.
Asian Stock Market today: The Japanese Nikkei rose 0.34 percent in early trading on Monday, while the Shanghai index fell 0.60 percent, Hong Kong’s Hang Seng fell 1.80 percent, and the South Korean KOSPI fell 0.39 percent.
US dollar rate: The US dollar is trading flat in the early session on Monday, while the Dollar Index remains above 102. During early morning trading, the dollar index is down 0.04 percent at 102.720.
US Bond yield: The US 10-year bond yield is 0.06 percent higher at 3.380 in the early morning session on Monday, while the US 30-year bond yield is 0.01 percent lower at 3.644.
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