Market is expected to open on a flattish note and likely to witness range bound move during the day - Nirmal Bang Ltd
Market Review
US:
Market fell on Tuesday as the rally led by major technology firms slowed, bringing the S&P 500’s six-day rise to a close.
Asia:
Market moved higher on Wednesday after Wall Street’s six-day winning streak came to an end. Stock benchmarks in Japan, South Korea, and Australia advanced, lifting a broader index of regional shares by 0.4% during early trading
India:
The benchmark equity indices closed lower for the third consecutive session on Tuesday amid volatility in the domestic stock markets. Market is expected to open on a flattish note and likely to witness range bound move during the day.
Global economy
Japan's trade balance unexpectedly recorded a deficit in April, as rising U.S. trade tariffs and a stronger yen pressured export performance, while imports proved more resilient than anticipated. Government data released on Wednesday showed a trade deficit of ¥115.8 bn, significantly missing forecasts for a ¥227.1 bn surplus and reversing the previous month’s ¥559.4 bn surplus. Export growth slowed markedly, increasing by only 2% year-on-year compared to a 4% rise in the previous month, in line with expectations. The latest report from the API revealed an unexpected increase in U.S. crude oil, gasoline, and distillate inventories. Crude stockpiles rose by 2.499 mn barrels, significantly diverging from the anticipated decline of 1.850 mn barrels. This surprise build signals potentially weaker demand for crude oil, which may exert downward pressure on prices. Although current inventory levels are lower than the previous figure of 4.287 mn barrels, the smaller-than-expected drawdown suggests that market demand may not be as robust as initially projected. The API's data remains a key indicator of U.S. petroleum demand and broader market sentiment.
Commodities:
Oil prices jumped more than 1% on Wednesday after reports Israel is preparing a strike on Iranian nuclear facilities, raising fears that a conflict could upset supply availability in the key Middle East producing region. Gold prices rose on Wednesday as the dollar slipped to a twoweek low and investors sought safety amid U.S. fiscal uncertainty, with Congress debating a sweeping tax bill.
Currency:
The U.S. dollar edged lower on Wednesday, extending a two-day slide against major peers, as President Donald Trump failed to convince Republican holdouts to back his sweeping tax bill.
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