Trade Setup for Thursday, 12 Oct  2023: Stock Market Today

 

Trade Setup for Thursday

 

Trade setup for Thursday, 12 Oct 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 market indexes are trading higher on Thursday ahead of the US CPI inflation data which is due later in the day. Japan’s Nikkei is trading higher by 1.19 percent, while Australia’s S&P ASX 200 also trading marginally higher by 0.25 percent.

South Korea’s Kospi extended its previous session gains, up by 1.04 percent. Shanghai and Hang Seng are trading higher by 0.55 percent and 1.59 percent, on the expectation of a stimulus package from Beijing. Elsewhere, the Straits Times and Taiwan are trading in the green at 7.15 a.m. IST.

Gift Nifty is trading higher by 18 points or 0.09 percent at 19848 levels. The indication getting from the Asian markets is positive today. Indian stock market indexes are likely to open higher. Traders should remain cautious at the higher level as CPI inflation is expected later in the day.

 

U.S. Stock Market Indexes Update

 

The US stock market indexes closed higher on Wednesday, as investors shrugged off slightly higher producer price index (PPI) data and looked ahead to the CPI inflation data due on Thursday. The PPI reading rose 0.5% in September, slightly higher than the expectation of 0.3%, while the Core PPI i.e. excluding food and energy, prices were up 0.3% as against the 0.2% estimated.

The Fed’s minutes of the last meeting showed that most members backed more policy tightening until the inflation is heading back to 2%. The market sentiments remain positive as the 10-year Treasury yield declined to 4.564%, it was settled at 4.664% on Tuesday.

Meanwhile, Exxon Mobil has agreed to purchase rival Pioneer Natural Resources for $59.5 billion in an all-stock deal. The share price of Exxon Mobil ended at about  3.5% lower, while Pioneer’s share gained 1.4%. The key US stock market indexes Dow Jones and S&P 500 gained 0.19 percent and 0.43 percent respectively while Nasdaq was up by 0.71 percent on Wednesday.

 

European Stock Market Indexes Updates

 

European stock market indexes closed mixed on Wednesday after a sharp rally in the previous session. The International Monetary Fund (IMF) trimmed its euro area GDP growth forecast from 0.9% to 0.7% in 2023, in its October World Economic Outlook, and 1.5% to 1.2% in 2024.

According to an ECB consumer expectation survey, the Eurozone households see inflation staying slightly above the European Central Bank’s 2% target for another three years. According to the Federal Statistical Office, the inflation rate in Germany was 4.5% in September as against the same period last year.

The pan-European Stoxx 600 index ended higher by 0.15 percent. The key European stock market indexes CAC closed lower by 0.44 percent while DAX closed slightly higher by 0.24 percent. The UK’s FTSE was also closed lower by 0.11 percent on Wednesday.

 

Indian Stock Market Indexes

 

Indian stock market indexes closed higher for the second straight session on Wednesday amid positive global cues. The markets gained as US Treasury yields declined after Fed officials made dovish remarks about pausing interest rate hikes. Further, the expectation of a stimulus package from Beijing and strong quarterly results from South Korea lifted the Asian market’s mood on Wednesday. 

The market breadth was strong with the advance-decline indicating a ratio of 3:1 at the close. FIIs were the net sellers in the Indian equity cash market segments, FIIs offloaded shares worth Rs 421.77 crore while DIIs bought shares worth Rs 1032.02 crore.

 

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Editor’s Desk