Trade Setup for Monday 5 June: Stock Market Today

 

Trade setup for Monday 5 June 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 market indexes are trading higher on Monday after US President Joe Biden signed into law a debt ceiling bill over the weekend, which averted US default. The sentiments are also positive, as the monthly US labor market report released on Friday pointing a pause in US rate hikes in the upcoming Fed meeting.

Nikkei is trading higher by 1.68 percent, as Japan’s services activity expands to a record high in May. Hang Seng index erased its opening losses and is trading higher by 0.50 percent. The latest data showed Hong Kong’s private sector expands at the slowest pace in May. Shanghai index is trading flat while Kospi is trading higher by 0.47 at 7.20 am IST.

SGX Nifty is trading higher by 80 points or 0.43 percent at 18709 levels. The indication getting from the Asian markets is positive today. The Indian stock markets are likely to open a gap-up and will trade in the positive terrain on Monday.

 

U.S. Stock Market Indexes update

 

The US stock markets closed higher on Friday after the monthly labor market data. Investors remain optimistic about the news that the debt-ceiling bill could likely be signed into law soon to avoid a U.S. default. The monthly job data showed that the U.S. economy created more new jobs in May, above expectation but the unemployment rate rose more than expected, while wage growth slowed in May. 

Energy stocks led the gains on Friday for the second consecutive day on speculation that OPEC+ may cut oil production at Sunday’s meeting. The key US stock market indexes, Dow Jones and S&P 500 ended higher by 2.12 percent and 1.45 percent respectively, while Nasdaq gained 1.07 percent on Friday.

 

European Stock Market Indexes Updates

 

European stock market indexes ended higher on Friday, as the market sentiment was positive after the US lawmakers reached an agreement to raise the nation’s debt ceiling, avoiding the threat of a government default. The stronger-than-expected US job creation data in May and the better-than-expected Industrial production output in France for the month of April also lifted the market sentiments on the last trading day of the week.

 

The pan Europen Stoxx 600 index gained 1.51 percent. The major European stock market indexes FTSE and DAX closed higher by 1.54 percent and 1.23 percent respectively, while France’s CAC jumped 1.83 percent on Friday.

 

Indian Stock Market Indexes

 

Indian stock market indexes closed slightly higher on Friday amid positive global cues. The broader markets outperformed the benchmark indices on the last day of the week. 

The market breadth was quite strong with the advance decline indicating a ratio of 2:1 at the close. FIIs were the net sellers, they offloaded shares worth Rs 658.88 crore while DIIs bought shares worth Rs 581.85 crore on Friday.

 

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News you should read before the trade setup for today 5 June 2023

 

The Crude oil prices are trading around 1 percent higher in the early trade of Monday, as Saudi Arabia pledged oil production cuts in July while OPEC+ members agreed to supply cuts into 2024.

In the Organisation of Petroleum Exporting Countries (OPEC) plus Allies meeting on Sunday 4 June, Saudi Arabia has decided to cut production by around 1 million barrels per day (bpd) in July to 9 million bpd. This is in addition to the earlier cuts of 3.66 million bpd of cuts that the OPEC+ has announced since Oct 2022 and was extended till 2024 end from the earlier decided 2023 end, in the meeting.

 

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Happy Investing!!

Editor’s Desk