Gift Nifty is under pressure. Asia and Dow futures also look weak. US markets closed flat yesterday with recovery from lower levels. There was recovery in the market from the day’s low levels. Minor changes were seen in the American stock market on Wednesday. The Dow Jones Industrial Average rose 106.84 points, or 0.25%, to 42,635.20, the S&P 500 rose 9.20 points, or 0.16%, to 5,918.23 and the Nasdaq Composite dropped 10.80 points, or 0.06%, to 19,478.88.
Bond yield, dollar situation
The US 10 year bond yield has reached 4.67% while the 20 year bond yield has crossed the 5% level. The dollar index has crossed the level of 109.
What came out in the FOMC minutes?
The pace of policy relief is about to slow down. High inflation rate is one of the reasons for this. Expectation of decline in the labor market is also a reason. The fear of rising inflation has once again increased.
ADP employment figures
1.22 lakh people got jobs in December. People have got jobs in the private sector. The market was expecting a figure of 1.4 lakh. The income of those who changed jobs has increased by 7.1%. The income of those who did not change jobs increased by 4.6%. Meanwhile, it is expected to be between Rs 1.50-1.55 lakh. The unemployment rate is expected to remain at 4.2%.
Morgan Stanley on the market
Morgan Stanley said that the market is keeping an eye on inflation rates and interest rates. A market decline is possible but not till 2022. Market volatility is possible in H1 of 2025. Market conditions are expected to improve by H2. At the same time, Goldman Sachs said that the ongoing rise in yields may have an impact on equities. There is a possibility of a fall in the market on negative news.
Asian market
Meanwhile, today the Asian markets are witnessing a decline in trading. GIFT NIFTY is showing a fall of 67.50 points. At the same time, Nikkei is seen around 39,470.99 with a decline of about 1.28 percent. At the same time, Strait Times is showing a weakness of 0.52 percent. Taiwan’s market is trading at the level of 23,312.79, down 0.40 percent. Whereas Hang Seng is seen with a gain of 0.25 percent at the level of 19,328.17. At the same time, Kospi is trading with 0.39 percent. At the same time, Shanghai Composite is showing a decline of 0.29 percent at the level of 3,220.72.