Trade Setup for Wednesday 21 June: Stock Market Today
Trade setup for Wednesday 21 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 Markets
Asian stock market indexes are mostly trading lower on Wednesday, tracking the losses from Wall Street overnight. Japan’s Nikkei reversed early losses and is trading higher by 0.14 percent, as the business sentiments of large manufacturers rose for the second month in May, according to a survey. South Korea’s Kospi extended its previous session losses, despite its producer inflation decline in May.
Kopsi trading lower by 0.47 percent. Shanghai and Hang Seng are also trading lower by 0.28 percent and 1.63 percent respectively. SGX Nifty is trading flat to negative, down by 9 points or 0.05 percent at 18872 levels at 7.10 am IST
The indication getting from the Asian stock markets is negative. Indian stock market indexes are likely to open flat and may trade sideways.
U.S. Stock Market Indexes update
The US stock market indexes ended lower on Tuesday, as traders preferred to stay on the sideline ahead of the Federal Reserve two-day testimony, which is going to start on Wednesday. Energy stocks led the losses due to demand concerns from China after the central bank cut smaller-than-expected interest rates.
Meanwhile, in tech, chip stock continues to decline, Intel slipped 4 percent after the company said it would invest more than $32B to build two semiconductor units in Germany. On the economic front, the housing starts jumped 21 percent to 1.6M in May, the fastest pace in 13 months and above expectations.
The US major stock market indexes, Dow Jones and S&P 500 declined by 0.72 percent and 0.47 percent respectively, while tech-heavy Nasdaq was down by 0.16 percent on Tuesday.
European Stock Market Indexes Updates
European stock markets closed lower on Tuesday, as investor sentiments hit after China cut interest rates smaller than expected. Investors are in concern about the potential interest rate hike in both the eurozone and the US. Investors also remain cautious ahead of the UK’s inflation data, which is due on Wednesday, and the Bank of England’s interest rate decision on Thursday.
The majority of the sectors closed in the red in Europe, the Auto sector fell the most while the Utility sectors closed above the flatline. The pan-European Stoxx 600 index ended lower by 0.6 percent on Tuesday. The other key European stock market index CAC was down by 0.27 percent while UK’s FTSE closed lower by 0.25 percent on Tuesday.
German’s DAX fell the most, down by 0.56 percent on Tuesday, as the chemical stock Lanxess slipped 15.4% after the company announced that it would miss profit forecasts for the year. However, the downside was limited as German plastic and chemical company Covestro gained around 12% on takeover news.
Indian Stock Market Indexes
Indian stock market indexes pared early losses and closed higher on Tuesday amid volatility. The market sentiments were hit due to negative cues from Asian markets, as the central bank of China cut the interest rates lower than it was expected. The broader markets continued to outperform their larger peers.
The market breadth was positive with the advance decline indicating a ratio of 2:1 at the close. FIIs were the net seller on Tuesday, as they offloaded Rs 1942.62 crore while DIIs were the net buyers and bought shares worth Rs 1972.51 crore on Tuesday.
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