Investors will focus on China’s loan prime rate decision on Tuesday, along with Federal Reserve chairman Jerome Powell’s testimony before the House Financial Services Committee and the Senate Banking Committee later this week.
On Friday, the S&P 500 halted a six-day winning streak, but still notched its best week since March. Investors opted to take some chips off the table ahead of Monday’s US holiday. The Nasdaq 100 underperformed, led by losses in giants like Microsoft Corp. and Apple Inc., which had recently closed at all-time highs. A worrisome warning from Micron Technology Inc. weighed on chipmakers, while Adobe Inc. climbed on a bullish forecast, Bloomberg reported.
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On the domestic front, Indian markets ended the week gone by on a high note amid persistent foreign capital inflows on improved sentiment. Both the equity benchmark indices, Sensex and Nifty, ended at their all-time closing highs on Friday.
On a weekly basis, the Sensex gained 758.95 points or 1.21%, and the Nifty climbed 262.6 points or 1.41%.
“Falling inflation and healthy economic data along with consistent FIIs buying cheered the domestic sentiments. Nifty came within striking distance of an all-time high. We expect the overall structure to remain positive with major events now behind,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Also Read: Stock market triggers: Global cues, macro data among factors that may drive Sensex, Nifty this week
He believes all eyes would be on Prime Minister Narendra Modi’s visit to the US this week, as it would bring in cross-border agreements with a key focus on Defence.
Sectors like Pharma, Healthcare, and Insurance companies would remain in focus after recovery was seen in monthly industry data, he added.
Asian Markets
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.1% lower.
Japan’s Nikkei 225 fell 0.37% and the Topix was down 0.1%. South Korea’s Kospi declined 0.41%, while the Kosdaq traded 0.5% lower.
Hong Kong’s Hang Seng index futures were over 50 points lower at 19,988.
In Australia, the S&P/ASX 200 higher by 0.2%.
The SGX Nifty was trading 4.5 points, or 0.02%, lower at 18,893.5, indicating a flat start for the Indian indices.
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Wall Street
On Friday, the S&P 500 fell 16.25 points, or 0.37%, to 4,409.59, while the Dow Jones Industrial Average declined 108.94 points, or 0.32%, at 34,299.12. The Nasdaq composite fell 93.25, or 0.68%, at 13,689.57.
US stock and bond markets will remain closed for the Juneteenth holiday Monday.
Europe
European shares ended higher Friday.
Britain’s FTSE 100 rose 0.19% at 7,642.72, while Germany’s Frankfurt DAX gained 0.41% at 16,357.63. France’s CAC 40 rallied 1.34% to 7,388.65.
Energy
Crude oil prices declined on Monday with both the benchmarks falling over a percent.
Brent futures fell 1.06% to $75.80 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.32% to $70.83 a barrel.
Currencies
The dollar index was little changed against major peers, after falling 1.2% the previous week, the most in five months.
The yen was undermined by a dovish Bank of Japan, touching a seven-month low of 141.90 per dollar, while the hawkish the European Central Bank, which hiked by a quarter point last week, aided the euro to hover close to a five-week top at $1.094, Reuters reported.
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Updated: 19 Jun 2023, 07:11 AM IST