Trade Setup for Friday July 7: Stock Market Today

 

Trade setup for Friday 7 July 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens and ahead of Trade Setup today.

 

Asian Stock Markets

 

Asian stock markets are trading lower on Friday, as a strong job report was released in the US overnight indicating more rate hikes by the Fed. The Asian stock market indexes extended declines, as US markets trigger a sell-off after the strong economic data. The key indexes, Nikkei, Hang Seng, Shanghai, and Kospi are trading lower by 0.59 percent, 1.17 percent, 0.49 percent, and 1.40 percent respectively at 7.15 am IST.

The indication getting from the Asian stock markets is negative today, but Gift Nifty is trading flat to positive at 19490. The Indian stock market indexes are likely to open on a flat note and trade volatile. 

 

U.S. Stock Market Indexes update

 

The US stock markets closed lower on Thursday after the strong economic data raised expectations of further interest rate hikes. The private sector payrolls grew by 497,000 in June as per ADP-payroll service firm, much higher than the 267,000 reported a  month earlier and above expectations of 228,000. In a sign of further economic strengthening, the report from ISM showed that the index of services activity rose more than expected in June.

The US-Treasury yields of 2yrs and 5yrs jumped 5% and 4% respectively after the strong job report in anticipation of more rate hikes by the Fed. Markets have priced in nearly 93% of the price hike in the July Fed meeting, according to the Fed rate monitor tool.

Energy stocks lead the losses despite the recovery in oil prices and consumer stocks were under pressure on Thursday. The US stock market indexes, Dow Jones and S&P 500 declined 1.07 percent and 0.79 percent respectively while Nasdaq was down 0.82 percent on Thursday.

 

European Stock Market Indexes Updates

 

European stock markets closed sharply lower on Thursday after strong US job data was released. Investors fear more monetary policy tightening after the 10-year-old US Treasury yields jumped above 4 percent. Almost all sectoral indices closed in the red, travel, and leisure led the losses followed by the retail sectors.

The pan-European Stoxx 600 index was down 2.42 percent and closed near the day’s low on Thursday. The key European stock market indexes, CAC and DAX declined 3.23 percent and 2.63 percent respectively while UK’s FTSE was down by 2.22 percent on Thursday.

 

Indian Stock Market Indexes

 

Indian stock market indexes closed higher after a volatile trading session on Thursday. The equity benchmarks gained as the session progressed and closed near the day high despite weak global cues. The markets were volatile due to the expiry of the weekly index options on the NSE.

The market breadth was once again strong with the advance decline indicating a 2:1 ratio at the close. FIIs were the net buyers, they bought Rs 2641.05 crore while DIIs were the sellers and they sold Rs 2351.66 crore on Thursday.

 

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Happy Investing!!

Editor’s Desk