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5 things that changed for market overnight: Gift Nifty, US PCE inflation among key global market cues for Sensex today


Asian markets traded mostly higher, while the US stock market ended mixed overnight amid the release of key economic data that raised hopes that the US Federal Reserve may not hike interest rates further.

Investors await the US employment data due on Friday for clues on the Fed’s monetary policy outlook.

On the domestic front, India’s gross domestic product (GDP) grew by 7.8% in the April-June quarter of current fiscal (2023-2024), compared to a growth of 6.1% in the previous January-March quarter of fiscal 2022-23, according to official data shared by the National Statistical Office. 

On Thursday, the benchmark equity indices, Sensex and the Nifty ended in the negative territory, tracking mixed global cues, ahead of GDP data.

“We expect the market to remain sideways on the back of mixed cues from global as well as domestic markets,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded mixed on Friday following a muted trend on Wall Street as investors await a slew of economic data in the region, including China’s Caixin manufacturing PMI data.

Japan’s Nikkei 225 gained 0.41%, while the Topix was up 0.75%. South Korea’s Kospi rose 0.35%.

The Hong Kong stock market is shut as the city is bracing for a hit from Super Typhoon Saola, which may be the strongest storm in at least five years.

Australia’s S&P/ASX 200 fell 0.29%.

Meanwhile, Gift Nifty was trading at 19,405 as compared to Nifty futures’ previous close of 19,428.30, indicating a negative start for the Indian benchmark indices.

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Wall Street

The US stock market ended mixed on Thursday after July inflation data met estimates, raising expectations that the Federal Reserve could pause its monetary tightening.

The S&P 500 declined 7.21 points, or 0.16%, to 4,507.66, while the Dow Jones Industrial Average fell 168.33 points, or 0.48%, to 34,721.91. The Nasdaq Composite ended 15.66 points, or 0.11%, higher at 14,034.97.

Among stocks, Amazon shares gained 2.2%, while Tesla share price rose 0.46%.

Salesforce rallied 3% after upbeat revenue forecasts. Broadcom rose 3.4% and Intel gained 1.8%.

Dollar General tumbled 12% after the discount retailer cut its annual same-store sales forecast. Its rival Dollar Tree also declined 1.7%.

US PCE Inflation

The Personal Consumption Expenditures (PCE) price index, considered the Federal Reserve’s preferred inflation gauge, rose 3.3% in July on an annual basis, a commerce department report showed on Thursday. Excluding volatile food and energy components, the core PCE price index rose 4.2% in July, year-on-year.

In a separate report, weekly jobless claims for the week ended August 26 fell to 228,000, compared with estimates of 235,000 claims, reining in investor sentiment, the Labor Department said.

Japan’s factory activity shrinks

Japan’s factory activity shrank for a third straight month in August, a survey showed on Friday.

The final au Jibun Bank Japan manufacturing purchasing managers’ index (PMI) was at 49.6, unchanged from the previous month and slightly down from the flash reading of 49.7. It was the third month the index has come in below the 50.0 threshold that separates growth from contraction, Reuters reported.

Dell raises full-year forecasts 

Dell Technologies raised its full-year revenue and profit forecast on Thursday, as it benefited from the artificial intelligence (AI) boom and stabilizing demand for computer hardware and server products, Reuters reported.

The company forecast third-quarter revenue between $22.5 billion and $23.5 billion beating analysts’ estimates of $21.67 billion, according to Refinitiv data. Dell expects earnings per share of $1.45, plus or minus 10 cents compared with estimates of $1.38.

For the full year, Dell now expects revenue between $89.5 billion and $91.5 billion, and earnings per share of $6.30, plus or minus 20 cents.

Dell Technologies share price rallied 8% in extended trading.

(Witn inputs from Reuters)

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Updated: 01 Sep 2023, 07:13 AM IST

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.