Global markets: SGX Nifty up 22 points; Asian stocks subdued ahead of US inflation data

Demystifying Emerging Market Currency Volatility: Causes and Effects

Global markets today: On Tuesday, a measure of global stocks went up and bond yields went up just a little bit. This is because traders think that interest rates will soon reach their highest point, and the market is betting that the US Federal Reserve will tighten monetary policy even more in May to stop inflation.

Here are the main things that could affect the Indian stock market right now:

SGX Nifty
SGX Nifty went up and was trading at a premium of more than 20 points over Nifty Futures at the end of the day. This shows that the Indian stock market will have a flat to positive start today.

Asian stocks
Asian stocks are likely to open higher after US markets traded in a narrow range before inflation data that could show if the Federal Reserve will raise interest rates again.

US, European stocks
Europe’s stock markets went up after a long four-day Easter break, while the S&P 500 went down right before the market closed and the Nasdaq went down. Large US banks will start reporting their profits on Friday. Profits are expected to go down overall, but banks are thought to be undervalued after a sell-off in March.

MSCI’s measure of stocks all over the world went up by 0.43 percent. At the end of the day, the pan-European STOXX 600 index was up 0.62 percent, and Japan’s Nikkei gained 1.05 percent.

The Dow Jones Industrial Average went up 0.29 percent and the S&P 500 went down 0.001 percent to end the day. After trying to go up for most of the session, the Nasdaq Composite fell by 0.43%.

Investors can’t wait until Wednesday, when the US reports consumer prices, and Thursday, when it reports producer prices. A Reuters poll of economists says that the consumer price index will show that core inflation rose 0.4% month-over-month and 5.6% year-over-year in March.

Jonathan Golub, the chief US equity strategist at Credit Suisse, said in a note that core CPI is likely to bottom out at 5% in September before going up if the current trend continues. This is because prices for services are still going up.

China shares
The Shanghai Composite Index went up 0.1% at the start of trading, but the Hang Seng Index in Hong Kong went down 0.02%. China’s consumer price inflation was at its slowest in March since September 2021, according to data released on Tuesday.

The dollar went down after a strong U.S. jobs report for March showed a strong job market. This made people even more likely to think that the Fed will raise rates again. Employers added 236,000 jobs, and the unemployment rate went down to 3.5%, according to data released on Friday.

The dollar index went down by 0.322%. The euro went up by 0.49 percent to $1.0912 per dollar, while the yen went down by 0.07% to 133.69 per dollar.

Crypto Bitcoin went up for the fourth day in a row, blowing past the key $30,000 level for the first time in 10 months before pulling back to $30,074.00. For the past three weeks, the price of the digital token had been stuck between $26,500 and $29,400.

Oil went up above $81 a barrel and kept going up as the first of a number of supply-and-demand forecasts coming out this week predicted a small increase in US production.

US crude went up $1.79 to $81.53 a barrel, and Brent went up $1.43 to $85.61 a barrel.

Source: Team CurrencyVeda