Trade Setup for Thursday: Stock Market Today (4 Jan 2024)

 

Trade Setup for Thursday

 

Trade Setup for Thursday, 4 Jan 2024: Good morning, and welcome to the morning reports, the top things to know ahead of market opening and Trade setup today.

 

Asian Stock Markets

 

The Asian stock market indexes are mostly trading lower on Thursday, as investors assessed the Fed’s minutes of the December meeting. Japan’s Nikkei 225 resumed its trading after the extended New Year holiday and led the losses in the region, down 1.15%. Australia’s S&P ASX 200 is trading lower by 0.32%

South Korea’s Kospi index is down by 0.76% after a sharp selloff in the previous session. Shanghai index is trading negative, losing 0.31% at this moment, while Hangseng index is trading slightly higher by 0.09% at 7.15 am IST. The Straits Times is trading in the red, while Taiwan is trading slightly higher after the previous session’s sharp selloff.

 

U.S. Stock Market Indexes Updates

 

The US stock market indexes closed lower for the second consecutive day on Wednesday, as the Fed’s minutes of the December meeting failed to encourage investors. The minutes released on Wednesday suggest the interest rate peaked but the outlook remains uncertain, the minutes did not provide any direct clues about when rate cuts are likely to start.

The 10-year Treasury yield after hitting 4% ended at 3.992% on Wednesday, It closed at 3.936% on Tuesday. The economic data released on Wednesday showed the Job Opening and Labour Turnover (JOLTs) reading came in line with expectations. Although, the ISM Manufacturing PMI data came slightly better in December than the previous month, but remained in contraction.

The Dow Jones Industrial Average (DJIA) index and S&P 500 index ended lower by 0.76% and 0.80% respectively. The tech-heavy Nasdaq composite index was down by 1.18% on Wednesday. 

 

European Stock Market Indexes Updates

 

European stock market indexes closed sharply lower on Wednesday, the second consecutive session of 2024. Investors remained sidelined as they sought more confirmation signals from central banks that they are ready to reduce interest rates in 2024. Meanwhile, investors kept a close eye on the release of the US Fed’s minutes of the December meeting.

On the economic front, the unemployment rate rose at a slower-than-expected rate in Germany in December, according to the Federal Employment Agency, while the annual unemployment rate was one of the lowest since German reunification.

The Pan-European Stoxx 600 index declined by 0.9%. Food and Beverage stocks closed higher, while construction and material fell 2.9% and technology stocks declined 1.9%. The key European stock market indexes, CAC and DAX fell by 1.61% and 1.40% respectively while the UK’s FTSE was down by 0.57% on Wednesday.

 

Indian stock markets

 

Indian stock markets ended with significant losses on Wednesday, sliding for the second consecutive session. The domestic markets opened slightly lower following negative global cues and extended their losses as the session progressed. The sentiments were downbeat due to the surge in US Treasury yields and as the country’s Manufacturing PMI hit an 18-month low. 

The market breadth was almost flat, with an advance-decline indicating an equal ratio at the close. FIIs and DIIs were the net sellers in the Indian equity cash segments. FIIs sold shares worth Rs 666.34 crore while DIIs offloaded shares worth Rs 862.98 crore.

 

Stock Market Today

 

The global market cues are negative today. The Gift Nifty index is trading 42 points higher at 21622 levels. The indication from the Gift Nifty is slightly positive. Indian stock market indexes are likely to open flat to positive but remain volatile.

 

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Editor’s Desk