Global Stocks See Rebound on Positive Market Cues, Indian Market Set to Open Higher
Global stocks are on the rise as positive market cues provide support. The Indian market is expected to open higher following a sharp decline in the previous session. Investors are looking to Asian markets, which traded higher, and the US stock market, which ended in the green. The rally in equities was supported by falling Treasury yields and comments from a US Federal Reserve official suggesting potential rate cuts.
The rebound in global stocks comes after the Indian stock market experienced significant losses on Monday. Weak global cues led investors to book profits ahead of the release of inflation data and crucial earnings reports scheduled for this week. The Sensex declined 670.93 points, or 0.93%, while the Nifty 50 ended 197.80 points, or 0.91% lower.
The upcoming release of inflation data and corporate earnings reports will be closely watched by investors for further direction. The inflation data from the US, China, and India will be particularly important in determining market sentiment. Amid concerns that the US Federal Reserve might delay rate cuts, the data will provide insights into the future trajectory of interest rates.
Asian markets rebounded on Tuesday following an overnight rally on Wall Street. Japan’s Nikkei 225 rallied 1.66% and the Topix rose 0.93%. South Korea’s Kospi gained 0.7%, and Hong Kong’s Hang Seng index futures indicated a higher start. These positive market cues are likely to support the opening of the Indian stock market.
In the US, stock market indices ended sharply higher on Monday. Megacap stocks led the rally, while falling Treasury yields also contributed to the positive sentiment. Among the top gainers were Amazon, Alphabet, Apple, Nvidia, and Advanced Micro Devices. Nvidia, in particular, saw its stock price surge to a record high close after unveiling new desktop graphics processors. The company’s stock market value now stands at nearly $1.3 trillion.
However, Boeing shares experienced a sharp decline after the plane maker and US regulators gave the go-ahead for airlines to inspect grounded jets following an incident involving an Alaska Airlines-operated 737 MAX 9. This incident adds to the series of quality problems associated with the 737 MAX family of aircraft.
The US dollar declined amid rising bets of Federal Reserve rate cuts this year on slowing US inflation. Treasury yields also fell ahead of readings on inflation and a new supply of government debt. US Federal Reserve Governor Michelle Bowman indicated that if inflation continues to fall toward the Fed’s 2% target, it would be appropriate to begin lowering the policy rate to prevent it from becoming overly restrictive.
Chinese authorities also signaled the possibility of a reserve ratio cut to boost lending and support reasonable growth in credit.
In conclusion, global stocks are rebounding on positive market cues, and the Indian market is expected to open higher. Investors are closely watching inflation data and corporate earnings reports for further guidance. The US stock market ended in the green, led by megacap stocks and supported by falling Treasury yields. However, Boeing shares registered a sharp decline following an incident with a 737 MAX 9 aircraft. The US dollar weakened, and Chinese authorities indicated measures to boost lending.
