Trade Setup for Wednesday 3 May: Stock Market Today

 

Trade setup for Wednesday 3 May 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens today.

Asian stock market indexes are trading lower on Wednesday following the negative cues from Wall Street overnight. Investors remain cautious ahead of the US Fed’s interest rate decision, which is due later in the day. The stock markets in Japan and China are closed today due to a holiday.

The major Asian stock market indexes Hang Seng and Kospi are trading lower by 1.25 percent and 0.65 percent respectively. The other key indexes Taiwan and Straits Times are also trading lower by 0.50 percent and 0.89 percent respectively. SGX Nifty is trading lower by 69 points or 0.38 percent at 18151 levels. 

The indication getting from the Asian stock markets is negative. The Indian stock markets are likely to open flat to negative today. Traders should remain cautious, as markets may remain volatile today.

 

U.S. Stock Market Indexes update

 

The US stock markets closed lower on Tuesday due to fresh worries about the health of regional banks just ahead of a Federal Reserve’s policy meeting. The regional banks fell sharply as worries about further stress in smaller lenders emerged due to higher interest rates for longer periods.

Investors were also cautious as Federal Reserves started its two-day meetings. The central bank is expected to hike rates by 0.25% on Wednesday, but its indication of a potential pause will dominate investor attention.

Energy stocks dragged due to a sharp fall in oil prices after fresh concerns that the U.S. could default as early as June 1 if Congress doesn’t lift the debt ceiling. The key US stock market indexes Dow Jones and Nasdaq fell 1.08 percent each while S&P 500 was down by 1.16 percent on Tuesday. 

 

European Stock Market Indexes Updates

 

European stock markets closed lower on Tuesday as a sharp fall in oil prices dragged the energy stocks lower and investors remain cautious about an expected Federal Reserve rate hike. The oil prices fell sharply by over 4% due to potential interest rate hikes by the US Fed and surprise contraction in China’s factory activity data. 

The European markets also reacted negatively to BP’s first quarterly earnings, after the company reported a fall in profits more than expected. The banking stocks traded in the positive territory for most of the session in the last hour they fell and closed in the negative territory.

All sectoral indices closed in the red with media stocks falling the most followed by mining stocks. The key stock market indexes FTSE and DAX closed lower by 1.25 percent and 1.24 percent respectively while CAC was down by 1.47 percent on Tuesday.

 

Indian stock market updates

 

Indian stock markets opened a gap-up on Tuesday and ended higher for the sixth straight session. The domestic markets made an optimistic start due to positive economic data released during the weekend. The market breadth was strong with the advance decline indicating a ratio of 2:1 at the close. Foreign investors were the buyers, they bought Rs 1997.35 crore worth of shares while DIIs offloaded Rs 394.05 crore on Tuesday.

 

Q4 Results Today

 

Titan Company, ABB India, Tata Chemicals, Petronet LNG, AAVAS Financiers, Anupam Rasayan India, Adani Wilmar, Bajaj Consumer Care, MRF, Cholamandalam Investment and Finance Company, Godrej Properties, Havells India, Jyothy Labs, KEC International, Mold-Tek Packaging, R Systems International, SIS, Sona BLW Precision Forgings, and Sula Vineyard will announce their quarterly earnings on 2 May 2023

 

News you should read before the trade setup for today 3 May

 

The crude oil prices corrected almost 5% on Tuesday due to the fears of a possible U.S. debt default and weak factory data in the world’s largest economy. Both the oil benchmarks WTI and Brent fell sharply after Treasury Secretary Janet Yellen said the U.S. government could run out of money within a month. 

The latest readings on U.S. factory orders came below expectations and in addition to this, the new concerns of debt default dragged the oil prices lower on Tuesday. On Wednesday, at 6.30 am both WTI and Brent are trading flat. India is the second largest importer of crude oil, the falling oil prices will support the Indian economy by reducing the import bill.

 

If you like the post ” Trade Setup for Wednesday 3 May: Stock Market Today” please share it with others

 

You may also like to read, Nifty and Bank Nifty Prediction for Tomorrow 3 May 2023

                                                  Stock Market Prediction Next Week (2- 5 April 2023)

 

Happy Investing!!

Editor’s Desk