The Indian stock market is expected to open lower on Tuesday following weakness in Asian markets ahead of key economic data releases in the region. The US markets were shut for a holiday.
The Reserve Bank of Australia will announce its interest rate decision, while the purchasing managers index readings from China, India and Hong Kong will also be released today. Thailand and the Philippines will release inflation data.
The Indian benchmark indices, Sensex and Nifty, ended higher on Monday supported by positive global cues amid hopes that the US Federal Reserve may not hike rates in September.
“Going ahead, domestic positives should continue to support indices with broader market sustaining momentum. Sectoral rotation would continue with niche and underperforming sectors likely to do well. Markets would await Services PMI data from Europe, UK and India that would be important for the market,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded lower amid key economic data releases across the region and as investors focus on China’s efforts to boost its ailing economy.
Japan’s Nikkei 225 and Topix were trading just below the flatline.
South Korea’s Kospi fell 0.19%, while the Kosdaq was flatline after the country’s August inflation rate was higher than expected at 3.4%.
Hong Kong’s Hang Seng index futures were trading lower at 18,719, compared to the HSI’s close of 18,844.16.
Australia’s S&P/ASX 200 declined 0.45%.
Meanwhile, Gift Nifty was trading lower at 19,580 as compared to Nifty futures’ previous close of 19,614, indicating a negative start for the Indian benchmark indices.
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Wall Street
The US stock market was shut on Monday for a holiday on account of Labour Day.
US equity futures were subdued in Asia trading. The Dow Jones Industrial Average and S&P 500 futures were below the flatline and Nasdaq Composite slightly above.
Japan’s household spending falls
Japanese household spending in July fell 5.0% from a year earlier, a fifth month of decline compared with a median market forecast for a 2.5% decline, government data showed on Tuesday.
On a seasonally adjusted, month-on-month basis, household spending fell 2.7%, which compared with a forecast of 0.7% gain.
China may never overtake US economy
China may not overtake the US to become the world’s biggest economy soon as the nation’s confidence slump becomes more entrenched, according to Bloomberg Economics. It now forecasts China will take until the mid-2040s for its gross domestic product to exceed that of the US.
However, even then, it will happen by “only a small margin” before “falling back behind,” the Bloomberg report said. Before the pandemic, the economists expected China to take and hold pole position as early as the start of next decade.
The economists now see growth in China’s economy slowing to 3.5% in 2030 and to near 1% by 2050. That’s lower than prior projections of 4.3% and 1.6%, respectively, Bloomberg reported.
London office values may fall 20% this year
Office buildings in London’s financial district will lose a fifth of their value in the year through March, said JPMorgan Chase & Co. analysts, Bloomberg report. The analysts have stopped recommending clients buy shares of The British Land Co. Plc.
City valuations have deteriorated in recent months, with statistics from Investment Property Databank Index showing an 8% decline, analysts including Neil Green said in a note to clients.
The analysts downgraded British Land to Neutral after two years at Overweight. The tenants of British Land include UBS Group AG and TP ICAP Group Plc.