Market is expected to open gap down note and likely to witness selling pressure during the day - Nirmal Bang Ltd
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Market Review
US:
US stocks ended lower on Friday after weak employment data stoked recession fears among market participants.
Asia:
Japan's benchmark indices extended decline on Monday amid bets on more rate hikes by the Bank of Japan going forward, strengthening the yen and bonds in the country.
India:
India's benchmark equity indices reversed five consecutive sessions of gains to close lower on Friday. The indices also snapped a weekly gaining streak of eight weeks to end at their lowest closing since July 25. The NSE Nifty 50 closed 293.20 points or 1.17% down at 24,717.70 and the S&P BSE Sensex was 885.60 points or 1.08% lower at 80,981. Market is expected to open gap down note and likely to witness selling pressure during the day.
Global Economy:
At least two of the Bank of Japan's nine board members called for an early interest rate increase at a policy meeting in June, minutes showed on Monday, underlining the central bank's hawkish tilt that provides scope for further hikes ahead. "Members agreed that the yen's recent falls were among factors that push up inflation, and must warrant close attention in guiding monetary policy," the minutes showed. The discussions underscore how yen moves and concerns over an inflation overshoot were key factors discussed at the BOJ's June meeting, and led to its decision in July to raise interest rates to levels unseen in 15 years. China’s services sector grew slightly more than expected in July, private purchasing managers index data showed on Monday, indicating that some facets of the economy remained strong despite a slowdown in manufacturing. The Caixin Services PMI grew to 52.1 in July from 51.2 in June, beating expectations of 51.4. A reading above 50 indicates expansion, with the reading now growing for a 19th consecutive month. Strength in the services sector was driven chiefly by steady onshore and offshore demand, while a resurgence in tourism also aided the sector.
Commodities:
Gold prices eased on Monday amid profit-taking, but recession worries and rising expectations of U.S. interest rate cuts limited further downside. Oil prices hovered at eight-month lows on Monday as fears of a recession in the United States, the world's top oil consumer, offset concerns that escalating tensions in the Middle East may affect supplies from the largest producing region.
Currency:
The yen surged to mid-January highs against the US dollar in Asian markets on August 5, as last week's weak US labour data stoked recession worries and continued to weigh on trades.
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