Morning comments Indian markets could open flat to mildly low | Make Money with Amit Bhawani 👨‍🏫💲

Morning comments

Indian markets could open flat to mildly lower, in line with mixed and range bound Asian markets today and lower US markets on Thursday.…

U.S. stock indexes finished lower on Thursday, with the Dow Jones Industrial Average and the S&P 500 posting four straight sessions of losses, on renewed anxiety over regional bank stocks and a slowing economy in the wake of the Federal Reserve's decision to raise interest rates for a tenth time on Wednesday. Shares of PacWest Bancorp ended 50.6% lower, extending the steep selloff after-hours Wednesday, amid reports the struggling regional bank’s executives were considering strategic alternatives of their own, which could include a sale.

Meanwhile, the European Central Bank delivered its latest policy decision, hiking rates by 25 basis points to 3.25%, while ECB President Christine Lagarde hinted at more hikes to come to tame inflation.

Economic data released on Thursday showed the number of Americans who applied for unemployment benefits rose by 13,000 to 242,000 during the final week of April. Meanwhile, the trade deficit narrowed 9% in March to a four-month low of $64.2 billion. US productivity, or nonfarm business employee output per hour, decreased at a 2.7% annual rate in the first quarter, according to figures out Thursday from the Bureau of Labour Statistics. That was the first drop in three quarters and compared to a 1.6% advance in the final three months of 2022.

Gold futures marked their highest settlement since August 2020 on Thursday while flirting with a new record, and silver prices finished the session at their highest in more than a year. Overall weakness in the U.S. dollar, banking-sector issues and worries surrounding a potential recession boosted haven demand for the precious metals. Gold for June delivery gained $18.70, or 0.9%, to settle at $2,055.70 per ounce on Comex after trading as high as $2,085.40.

China's service activity grew for a fourth straight month in April, a private-sector survey showed on Friday, as businesses continued to benefit from a return toward pre-pandemic levels of demand and output, although expansion slowed slightly.The Caixin/S&P Global services purchasing managers' index (PMI) fell to 56.4 in April from 57.8 the month prior.

Asian equities had a mixed start Friday after a rout in regional banks rattled Wall Street, with brewing anxiety about the next financial shoe to drop making traders increase their bets on Federal Reserve rate cuts.

Nifty rose for the 7th out of the past 8 sessions to close at more than four month highs on May 04. At close, Nifty was up 0.92% or 165.9 points at 18255.8. Nifty built on its previous gains well on May 04. It is now headed for 18319-18432 band on the upside while 18148 could provide support on the downside for the near term.