GAGA Share Market News

[hfe_template id='11223'] [ad_1] Wall Street shares pulled back from record highs hit early on Thursday in sympathy with rallying overseas indexes, as Treasury yields shook off soft U.S. data and rose anticipating new supply next week. The dollar firmed, as higher U.S. yields widened differentials with non-dollar rates that are trending lower. It drew closer to the 160 yen area that prompted Tokyo to intervene in late April to support its currency. The Dow Jones Industrial Average was the only major index that held gains. The S&P 500 and Nasdaq extended their string of intraday all-time highs before reversing, and the Nasdaq ended a seven-session streak of record closing highs. Disappointing housing starts and building permits data, along with a jobless claims report suggested a gradual cooling in the labor market, appeared to make the case that the Fed's restrictive policy is having its intended effect. "The weaker-than-expected economic data is suggestin...

[hfe_template id='11223'] [ad_1] Synopsis In the last few days, there have been trading sessions where all of sudden IT stocks have started to do well. This is coming at a time when there is nothing positive which either companies from the sector have said or there is anything else which can be seen as signs of things changing for better. Is this an first indication that global risk on trade is back on the table. There is enough evidence to show when US interest rates are high, there is a risk off mode globally and tech stocks both in India and globally don't outperform, rather they at times under perform. As soon as there is an indication that interest rates in the US are likely to come down, the risk on trade tends to make a comeback and tech stocks start to do well globally. But incase of Indian IT stock, there is probability that this risk on trade is helpful but another factor is adjustment of valuations and finally the fact that some money is going to move towa...

[hfe_template id='11223'] [ad_1] The Federal Reserve has disappointed investors this year, but no matter. The markets have adjusted. Even without any interest rate cuts so far in 2024 and with the likelihood of just one meager rate reduction by the end of the year the stock market has been purring along. That's quite an achievement, given the expectation in January that the Fed would trim rates six or seven times in 2024 and that interest rates throughout the economy would be much lower by now. Buoyant as the stock market may seem, when you look closely, it's apparent that the S&P 500's recent returns rest on a precarious base. AI fever based on the belief that artificial intelligence is ushering in a new technological age has been spreading among investors, and that has been enough so far to keep the overall stock market averages rising. But the rest of the market has been rather ho-hum. In fact, strip away the biggest companies, especially the tech comp...

[hfe_template id='11223'] [ad_1] Japan's Nikkei share average edged up on Monday as export-related stocks rose on a weaker yen following stronger-than-expected U.S. jobs data, while a rise in domestic yields boosted financial stocks. The Nikkei was up 0.49% at 38,872.19 by the midday break, while the broader Topix rose 0.7% to 2,774.37. The upside surprise in U.S. job growth prompted worries that the Federal Reserve may wait longer to cut interest rates than many investors had hoped. This had the yen brushing the 157 range against the U.S. dollar again, buoying export-related stocks such as Toyota Motor , up 1.7%, which benefit from a weaker currency. Meanwhile, the insurance and banking sectors rallied as Japanese government bond yields tracked U.S. Treasury yields higher, which rose after the jobs data. Of the Nikkei's 225 constituents, 170 advanced, rising modestly to push the index near 39,000 points ahead of monetary policy decisions this week by the Fed a...

[hfe_template id='11223'] [ad_1] The Reserve Bank of India (RBI) is likely to keep its policy interest rates unchanged for the 16th month and signal a sustained vigil on inflation due to volatile food prices, while an undiminished pace of economic growth obviates the need to lower consumer borrowing costs. Given the prevailing situation where food inflation remains uncomfortably high and blistering heat waves pose risks of depleting water levels and lower crop production, the RBI's Monetary Policy Committee (MPC) may push back rate cuts further into the year than was earlier anticipated. An ET poll of 14 respondents unanimously predicted that at the end of its three-day meeting on June 7, the MPC is likely to keep the repo rate unchanged at 6.50% while maintaining its stance of withdrawal of accommodation. This would mark the eight consecutive policy review in which the RBI has maintained a status quo on the benchmark policy repo rate. The repo rate is the rate at wh...

[hfe_template id='11223'] [ad_1] European shares declined on Wednesday as rising bond yields globally spurred concerns of interest rates staying elevated for longer, even as investors awaited more economic data to firm up bets on rate cuts. The pan-European STOXX 600 index fell 0.3% by 0708 GMT, with nearly all markets and sectors in the region trading in the red. Oil and gas was the only gainer among sectors in early trade, rising 0.8%, tracking higher oil prices. The yield on U.S. 10-year Treasuries rose to 4.5639%, while Germany's 10-year bond yield spiked to a one-month high and was last at 2.627% as traders digested the unexpected improvement in U.S. consumer confidence on Tuesday. Investors will now shift their focus to the inflation data from Germany later in the day, which is expected to show some moderation on a monthly basis in May. Shares of BHP Group were flat as it sought more time to engage with Anglo American over its 38.6 billion pounds ($49.20 bill...

[hfe_template id='11223'] [ad_1] Asian shares held a mixed tone on Tuesday after rallying the previous session, as rising bets of an imminent European rate cut helped risk appetite ahead of some key inflation data. A slew of European Central Bank officials said overnight the ECB has room to cut interest rates as inflation slows, underscoring expectations for a rate cut on June 6. With debate now shifting to subsequent moves, markets have fully priced in two rates cuts by October this year. That helped Wall Street stock futures firm ahead of the reopening of U.S. markets after a public holiday. S&P 500 futures rose 0.1% and Nasdaq futures gained 0.2% before a line-up of Federal Reserve speakers later in the day for the latest guidance on rate outlook. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4%, thanks to a 0.7% gain in Hong Kong's Hang Seng index, after gaining 0.9% on Monday. Japan's Nikkei, on the other hand, slipped 0.3%, rev...

[hfe_template id='11223'] [ad_1] The RBI’s Monetary Policy Committee (MPC) meeting on June 7, 2024 will be held in the aftermath of the momentous Lok Sabha election results on June 4, 2024. With the BJP poised to romp home, there is likely to be an air of expectation and excitement and a spring in the step. In view of multiple factors, including inter-alia, the global and domestic context, and the emerging inflation scenario, the RBI is likely to maintain a status quo on interest rates during this meeting. Why do we say so? Our view is that both the Government and the RBI will prefer to take stock of the macro-level geopolitical uncertainty caused by an escalation of the recent conflict in the Middle East, financial stress, persistent inflation and slowdown in international trade, the future of globalization, overarching macro-environment, the priorities of the Government and the fiscal glide path aimed at gradually reducing the fiscal deficit. The macroeconomic setting ...

[hfe_template id='11223'] [ad_1] The typical summer slowdown in U.S. stock markets may be more pronounced this year with inflation jitters and an early presidential debate that have the potential to weigh on a rally that has pushed the S&P 500 near record highs in recent months. The S&P 500 is up nearly 12% this year on strong earnings and signs inflation may be falling enough for the Federal Reserve to cut benchmark interest rates, but that rally is unlikely to continue in the months ahead, investors said. Summer has historically been the slowest season for U.S. stocks. The benchmark S&P 500 has risen 56% of the time between June through August, according to data from CFRA Research dating back to 1945. Traders on vacation and investors waiting for fall corporate earnings before committing to next year's asset allocations are often cited as reasons for the summer doldrums. This summer brings extra headwinds, though, with ongoing uncertainty over the timi...

[hfe_template id='11223'] [ad_1] Several key Asian share benchmarks fell on Thursday as markets digested the implications of policymakers in major economies preferring to take patient approach to monetary easing amid sticky inflation. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.57%. Australia's S&P/ASX 200 index was one of the biggest decliners, slumping 0.8%, also hurt by a pullback in some commodity prices. Geopolitical tensions also kept investors nervous as China's military started two days of "punishment" drills held in five areas around Taiwan just days after new Taiwan President Lai Ching-te took office. But Taiwan's stock market was not too fussed and was last up 0.3%. More hawkish-than-expected minutes of the Federal Reserve's latest policy meeting, a hot UK inflation print and a sobering assessment of New Zealand's inflation problems from the country's central bank have caused investors to pare th...

[hfe_template id='11223'] [ad_1] The Indian stock market continues to be resilient. Nifty at 22200 is trading at a PE of around 19.5 based on estimated FY25 earnings. The market cap to GDP stands at 126 percent. These valuations are higher than long-term averages. However, the near consensus in the market is that India’s superior growth and earnings potential for many years to come justifies higher valuations. Apart from GDP growth and corporate earnings, another crucial macro fundamental that impacts stock markets is the interest rate. As Warren Buffet famously said, “interest rates are to asset prices like gravity is to apples.” Softening interest rates are fodder for the bulls. Peaking of interest rate, and expectations that it will trend down, have played a major role in the ongoing global bull market. But the complexity of the global economic scenario, and the uncertainty surrounding inflation trends in the mother market US, have clouded the interest rate trajectory...

[hfe_template id='11223'] [ad_1] Foreign Portfolio Investors (FIIs) could end-up as net sellers of Indian equities in April breaking their two months of buying activity. In April so far, thay have sold local stocks worth Rs 6,304 crore. In March and February, FPIs were net buyers at Rs 35,098 crore and Rs 1,539 crore after selling shares worth Rs 25,744 crore in January. On the net basis, they are still buyers at Rs 4,589 crore, so far in this year. April will have two more trading sessions on April 29 and April 30. The outflows have been triggered by US inflation which has remained moderately up in March creating concerns that the US Federal Reserve could keep interest rates elevated for longer. This also throws a spanner on Street's hopes of likely rate-cut in June. The Federal Open Market Committee (FOMC) will meet on Tuesday for its monetary policy deliberations and will come out with the outcomes on May 1, 2024. It is most likely to leave interest rates unchange...