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:
US stocks closed lower on Tuesday as investors, deprived of economic data resulting from the shuttered government, looked to secondary indicators and remarks from US Federal Reserve officials for clues regarding economic weakness and monetary policy.
Asia:
Asian markets were trading mixed in the early trade after Wall Street’s pullback from record highs sparked caution among investors.
India:
The Indian benchmark indices erased some of the intraday gains but managed to close on a positive note for the fourth consecutive session on October 7 with Nifty closing above the 25,100 amid buying seen in the auto, consumer durables, oil & gas, energy, realty names. Market is expected to open on a flattish note and likely to witness range bound move during the day.
Global economy:
U.S. Consumer Credit rose just $0.36B in the latest release, sharply below the forecast of $12.9B and the previous $16.01B, signaling a steep slowdown in borrowing. The weak data reflects softer consumer spending and confidence, posing a bearish signal for the USD.
Amid the U.S. government shutdown, Carlyle Group estimated that U.S. jobs rose by only 17,000 in September, well below the expected 54,000, even as GDP grew at a 2.7% annualized pace. The firm’s data also showed a 3.8% drop in energy prices and a 3.3% rise in service prices (ex-shelter).
Japan’s real wages fall for eighth month in August- Japanese workers saw real wages fall for the eighth straight month in August, with a double-digit decrease in one-off compensations on top of relentless inflation outpacing nominal pay growth. Inflation-adjusted real wages, a key barometer of Japanese households’ purchasing power, fell 1.4% in August from a year earlier.
Commodities:
Oil prices edged higher in early trade on Wednesday as markets started to brush off oversupply fear for the time being, having digested a decision by OPEC+ to restrain November production increases.
Gold pushed through $4,000 an ounce to hit a record on Wednesday, driven by investors seeking safety from mounting economic and geopolitical uncertainty, alongside expectations of further interest rate cuts by the U.S. Federal Reserve
Currency:
The U.S. dollar rose to its strongest levels in six weeks in early Asian trading on Wednesday as risks around the U.S. government shutdown intensified, sparking fresh investor worries and boosting demand for safe haven assets.
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