2023-05-08 06:18:38
Morning commentsIndian markets could open mildly higher, in line with mostly higher Asian markets today and sharply higher US markets on Friday.…U.S. stocks closed sharply higher Friday, with all three major benchmarks snapping four straight days of losses, after strong jobs data for April, Apple Inc.’s better-than-forecast earnings report and a rebound in shares of regional banks. For the week, the Dow fell 1.2%, the S&P 500 declined 0.8% and the Nasdaq edged up 0.1%. Dow posted its biggest one-day percentage gain since Jan. 6. Apple announced a 4% dividend hike and a $90 billion extension of its stock buyback program in addition to reporting its quarterly results.
In U.S. economic data, the April employment report showed the U.S. economy added 253,000 jobs last month, surpassing the 180,000 forecast by economists polled by The Wall Street Journal. Annual wage growth also accelerated to 4.4%, up from 4.2% during the prior month, while the unemployment rate dropped to 3.4%, from 3.5%.
The chaotic week for financial markets ended with a rally in risk assets — possibly driven by short-covering — as regional banks rebounded from a brutal rout and solid jobs data tempered fears of a recession. Friday's trading suggested a focus on signs of economic strength rather than on the prospects for tighter policy, which often come with stronger than expected data.
April’s survey of global fund managers from BoFA Global Research showed stagflation expectations near historical highs, with 86% saying it will be part of the macroeconomic backdrop in 2024. Next week’s consumer price data for April, due on Wednesday, May 10, could offer a clearer picture of whether the Fed’s interest rate increases are cooling inflation.
Broader Latin American currencies index hit its highest level in more than eight years, supported by a weakening dollar and firm commodity prices.
Asian shares crept higher on Monday post a rally in risk assets on Friday and as investors braced for a week where U.S. inflation data will test wagers, the next move in interest rates will be down.
Nifty fell on May 05 after a sharp upmove on the previous day. MSCI’s clarification on inclusion of HDFC Bank to MSCI Global Standard Indices led to a sell-off in financials. At close, Nifty was down 1.02% or 186.8 points at 18069. Nifty hesitated to build on the gains on May 05 and fell, ending the week just 0.02% higher. In the process it formed a bearish shooting star formation on weekly charts. A breach of 18042 on the downside could take the Nifty towards 17863 and later 17550. On upmoves, 18180 could provide resistance.
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