Today’s Live Sensex Update: Nifty Surges to 23,000 Milestone, Sensex Peaks at 75,520; Bikaji Rises 6{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b}, Birla Precision Declines
Today’s Sensex Update: Asian stocks mirrored the downward trend on Wall Street, responding to activity data suggesting the Federal Reserve might maintain current interest rates throughout the year.
Australia and Japan saw declines in stock prices, while futures in Hong Kong indicated potential losses exceeding 1{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} upon Friday’s opening. The Golden Dragon Index, reflecting US-listed Chinese shares, experienced a 3.7{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} drop on Thursday, marking its steepest decline in six weeks. US contracts remained stable following significant decreases in both the S&P 500 and the Dow Jones Industrial Average.
Market swaps now fully anticipate the Federal Reserve’s initial quarter-point rate cut in December, a shift from November forecasts the day prior. Service sector growth hit a year-long high, and manufacturing output expanded briskly, indicating robust economic activity that challenges efforts to temper inflation, hence the Fed’s inclination toward prolonged rate stability.
According to economists at Australia & New Zealand Banking Group, the growth climate is favorable for central banks focused on economic welfare. The primary uncertainty for policymakers lies in whether inflation will converge with targets despite strong economic performance.
Emerging Asian currencies, such as South Korea’s won and Malaysia’s ringgit, weakened against a strengthening dollar.
In Japan, inflation eased for the second consecutive month, prompting speculation about the Bank of Japan’s capacity to raise interest rates further this year. The yield on 10-year Japanese government bonds surpassed 1{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} this week as markets priced in a nearly certain 10 basis point hike at the July meeting. The yen traded around 157 per dollar.
Despite the cooling inflation, financial markets persist in speculating about further tightening by the Bank of Japan. Analysts expect the BOJ to delay interest rate increases until around October, potentially adding pressure on the yen.
Atlanta Fed President Raphael Bostic echoed sentiments from other officials this week, emphasizing the need for the central bank to exercise patience in its monetary policy decisions. Minutes from the Fed’s May meeting underscored a consensus among policymakers to maintain higher rates for an extended period, with some questioning whether policy measures were sufficiently restrictive to meet inflation targets.
Treasuries stabilized after initial declines triggered by expectations of prolonged higher US interest rates. A gauge tracking the strength of the US dollar remained relatively unchanged in Asian trading on Friday, following a four-day strengthening streak driven by rising Treasury yields.
Meanwhile, Nvidia Corp’s impressive earnings propelled the chipmaker’s stock by over 9{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b}, surpassing the historic $1,000 mark. Analysts at JPMorgan Chase & Co.’s trading desk anticipate further growth for the S&P 500, buoyed by consistent advances in the AI sector and overall macroeconomic conditions.
In the commodities market, oil prices steadied on Friday following a recent slip, as traders assessed signs of weakening demand ahead of the US summer driving season. Gold prices remained relatively stable, maintaining losses from Thursday in response to US economic indicators.
