The US dollar’s strength and the rising price of crude oil are expected to cause the Indian stock market to open lower on Thursday – Global Markets.
Global Markets were divided, while the US stock market finished down due to worries that interest rates will stay high for a longer period of time due to stronger economic indicators.
In a fourth straight session of advances, the domestic benchmark market indices closed higher on Wednesday.
“Given the strength of domestic variables going forward, the market is likely to move in a wider range with a bullish bias, but sustained FII selling and a weak monsoon are cause for concern. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, warned that continued worry over the slowing global economy and interest rate hikes could continue to weigh on the market and cause sporadic profit booking.
Chinese markets
Following the overnight selloff on Wall Street and ahead of important trade data from China and Australia, Asian stock markets had uneven trading on Thursday.
The Topix and Nikkei 225 of Japan both traded slightly higher. The Kosdaq increased by 0.35% while the Kospi fell by 0.12% in South Korea.
The Hang Seng index futures in Hong Kong traded at 18,449 vs the HSI’s closing price of 18,449.98.
The S&P/ASX 200 in Australia dropped 0.45%.
Gift Nifty, in contrast to Nifty futures’ previous close of 19,665, was trading at approximately 19,625, signifying a slower start for the Indian benchmark benchmarks.
Market Street
After stronger-than-expected services sector data sparked worries that the US Federal Reserve would maintain higher interest rates for longer despite still-sticky inflation, the US stock market finished lower on Wednesday.
The Nasdaq Composite dropped 148.48 points, or 1.06%, to 13,872.47, while the S&P 500 dropped 31.35 points, or 0.70%, to close at 4,465.48. At 34,443.18, the Dow Jones Industrial Average finished 198.78 points, or 0.57%, lower.
Shares of Lockheed Martin fell 4% among equities after the company revised its F-35 aircraft delivery forecast.
Following the company’s announcement to decrease its employment by roughly 10% and restrict new hiring, Roku’s share price increased by almost 3%.
In August, the US services sector expanded.
According to Reuters, the US services sector unexpectedly picked up momentum in August as new orders firmed up and businesses increased their input costs.
The Institute for Supply Management (ISM) said that its non-manufacturing PMI increased to 54.5 last month from 52.7 in July, the highest number since February.
Dollar reaches six-month high
On Wednesday, the dollar reached a six-month high after solid US statistics projected further inflation pressure. After the data, the dollar strengthened versus the majority of other currencies, with the yen touching session lows and the euro and sterling falling to three-month lows.
The dollar index reached a new six-month high of 105.03 earlier and was last trading at 104.84, up 0.1%. Following the release of the report, the euro and pound both hit three-month lows; they were last trading flat at $1.0726 and down 0.5% at $1.2505, respectively.
Over $90 per barrel for Brent oil
Due to supply concerns following prolonged production restrictions in Saudi Arabia and Russia, crude oil prices increased during trading.
US West Texas Intermediate crude (WTI) futures increased by 0.16% to $87.68 while Brent crude futures increased by 0.24% to $90.82 per barrel.
GameStop Q2 exceeds expectations
After the company’s quarterly revenue above Wall Street expectations and it also reported a smaller-than-expected loss, driven by robust demand for videogames, collectibles, and consoles, GameStop’s share price increased by about 6% in extended trading.
Revenue for the company increased by nearly 2% to $1.16 billion for the three months ending July 29. GameStop lost 3 cents per share on an adjusted basis as opposed to the analysts’ predicted loss of 14 cents.
According to the corporation, the boost in revenue was mostly brought on by a “significant software release” and higher sales of new gaming gear in a few overseas Global Markets. In the second quarter, software and collectibles sales made up about 49% of overall revenue.
