Global markets: SGX Nifty, Dow Jones to US bond yield – key things to know before opening bell

Global markets: The US markets erased its early morning losses as US Fed chief Jerome Powell signaled less hawkish stance on interest rate hike. Crude oil prices on Multi Commodity Exchange (MCX) too witnessed heavy gains after hitting intraday low of 6,169 per barrel and finished at 6,363 per barrel, logging intraday gain of 232 per barrel or 3.78 per cent against its Monday close price. However, in international market, oil price rallied 4.10 per cent and logged its biggest intraday gain since November 2022.

Here we list out important things that changed in global markets when you were sleeping:

US markets

After Jerome Powell indicating less hawkish stance on US Fed interest rate hike, Wall Street witnessed heavy buying interest in late trade session on Tuesday. S&P 500 index closed 1.29 per cent higher, Dow Jones gained 0.78 per cent while tech-heavy Nasdaq index finished 1.90 per cent higher. Small Cap 2000 surged 0.79 per cent on Tuesday session.

Highlighting the pivot levels in regard to the key US indices, Anuj Gupta, Vice President — Research at IIFL Securities said, “Immediate support levels for Dow Jones is placed at 33,900 and 33,680 whereas it is facing immediate hurdle at 34,350 levels.” He said that 34,600 is major hurdle that Dow Jones is facing.

Asian markets

In early morning deals, Japanese Nikkei is down around 0.50 per cent, Hang Seng is up 0.36 per cent while South Korean KOSPI is up 0.66 per cent.

SGX Nifty traded range-bound on Tuesday and ended at 17,777 levels, logging 47 points or 0.27 per cent gain on Tuesday session. According to stock market experts, the short range of the SGX Nifty today is placed between 17,900 and 17,650, whereas the broad range of the index is placed between 18,000 and 17,400 levels.

“Immediate support for SGX Nifty is placed at 17,600 levels whereas immediate hurdle for the index is now placed at 17,850. Bullish or bearish trend can be ascertained on breakage of either side of the range. However, buy on dips is advisable rather taking any short position in current market scenario,” said Anuj Gupta.

Other global bourses

Australian Australia’s S&P/ASX 200 is up 0.30 per cent while DJ New Zealand ascended 0.55 per cent in early morning session.

US bond yield

US’ 10-year bond yield is down 0.76 per cent at 3.604 while 30-year bond yield is down 0.06 per cent at 3.704.

US Dollar Index

After US Fed Chairman Jerome Powell dropped signals about less hawkish stance on interest rate hike, US dollar rates erased its early morning gains. US Dollar Index currently 0.27 per cent lower at 103.34 levels.

Crude oil price

Oil prices on MCX finished at 6,363 per barrel, clocking 3.78 per cent intraday gain on Tuesday whereas in international markets it ended 4.10 per cent higher and logged its biggest intraday gain since November 2022.

Gold rates today

Like crude oil prices, gold rates also appreciated post Jerome Powell’s speech. Gold future contract for April 2023 finished 215 higher at 57,170 per 10 gm levels on Tuesday. Gold price in international market is quoting $1,872 per ounce levels.

“For the downtrend scenario, the price is currently holding above support at $1,860, which seems unstable for now. If the price drops below the current support, it may trigger some technical selling and drag the price deeper. For the uptrend scenario, the price must hold above $1,860 and breakthrough the resistance at round-figure mark $1,900 to confirm the uptrend,” said Marc Despallieres, Chief Strategy and Trading Officer at Vantage.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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