Global Markets Exhibit Mixed Sentiments Amidst Key Economic Data Awaited
Indian benchmark equity indices Sensex and Nifty 50 are poised for a subdued opening on Monday amidst mixed global market cues and ahead of major inflation data releases.
Charlie Kennedy
- 2024-01-07
- Updated 09:04 PM ET
(NewsNibs) - As investors brace for a slew of economic reports this week, including vital inflation data from the US, Japan, and China, Asian markets have shown a mixed performance. The anticipation has left MSCI’s broadest index of Asia-Pacific shares outside Japan relatively flat after a 2.5% fall in the previous week. Indicative of the tentative mood, Japan’s markets remained closed in observance of a public holiday. Meanwhile, South Korea's Kospi saw a moderate increase, Australia’s S&P/ASX 200 experienced a slight rise, and Hong Kong’s Hang Seng index futures pointed towards a higher opening. Conversely, South Korea’s secondary Kosdaq index reported a marginal decline.
Economic Performances and Policy Adjustments
Notably, the US markets ended slightly higher on Friday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closing up. The increase followed the release of the US nonfarm payrolls, which surpassed expectations by adding 216,000 jobs in December compared to the 170,000 anticipated by economists. Nonetheless, annual job increases marked a deceleration, with 2.7 million jobs added in 2023, a drop from the 4.8 million in 2022. Additionally, the services sector PMI revealed a contraction, hitting its lowest point since May.
In India, prospects are looking up as the National Statistical Office projects the economy to grow by 7.3% in the current fiscal year, maintaining its status as the fastest-growing major economy following a 7.2% growth in the previous year. In terms of market regulations, the Securities Exchange Board of India (SEBI) enacted changes allowing investors to engage in short-selling stocks traded in the futures and options segment. However, naked short-selling remains prohibited, and institutional investors are restricted from participating in day trading.
Market Outlook and Regulatory Reforms Set Stage for Trading Week
As global markets await the impact of forthcoming economic data, regulatory shifts in India’s stock market could stir activity among investors. With growth projections affirming India's economic strength and SEBI refining investment rules, the week ahead holds potential shifts in market dynamics. Nevertheless, institutional restrictions on day trading and the clampdown on naked short-selling demonstrate a cautious approach toward market integrity and investor protection.
