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Updated on: Friday, October 29, 2021, 09:00 AM IST

Stock markets could open flat to mildly higher following mixed Asian markets

Indian stock markets could open flat to mildly higher following mixed Asian markets today, and despite positive US markets on Thursday,Representative image   |  AFP PHOTO / FRED DUFOUR

Indian stock markets could open flat to mildly higher following mixed Asian markets today, and despite positive US markets on Thursday,Representative image | AFP PHOTO / FRED DUFOUR

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Trends on SGX Nifty indicate a flat opening for the index in India with a 15 points gain. The Nifty futures were trading at 17,896 on the Singaporean Exchange around 07:30 AM.

Indian markets could open flat to mildly higher following mixed Asian markets today, and despite positive US markets on Thursday, said Deepak Jasani, Head-Retail Research, HDFC Securities.

"Nifty is expected to open flat to negative at 17840 , down by 15 points. Yesterday Nifty had a sharp fall of over 300 points. Now the next level to watch in Nifty is 17800 , any close below it can take Nifty to 17600.

Nifty closed lower for the second straight day on October 28. In the process it fell the most in 6 months. At close, the Nifty was down 1.94 percent or 353.7 points to 17,857.25. Indian markets were the worst performers in the Asian region. Morgan Stanley has downgraded Indian markets to equal weight.

Advance decline ratio ended sharply in the negative. FPI unwinding has led to this fall and the adverse A/D ratio. In the latest fall the Nifty did not take support from the high made on September 24. 17557 on the downside could offer support to the Nifty while 17,968-18,034 could offer resistance. The weakness in Nifty could continue but the pace of fall could now reduce.

US stock indices closed higher

US stock indexes closed higher Thursday after good third quarter earnings reports and signs Democrats in Congress may be close to a budget deal provided support to investors who looked past a disappointing reading on the health of the overall economy in the third quarter.

Ford Motors was a standout, as its shares jumped 8.7 percent for their best day of the year after reporting blockbuster earnings while also raising guidance. Merck and Caterpillar also moved higher following earnings beats.

Although interest rates in the US are moving up and inflation is higher, that really isn’t being reflected in longer-term Treasury yields. The yield on the 10-year Treasury note traded around 1.57 percent Thursday, down from about 1.67 percent a week ago, according to Dow Jones Market Data.

The bond market’s yield curve has flattened as investors price in a tightening cycle. While rates on the short end of the curve have risen, the long end hasn’t steepened, as the market appears to expect that inflation will be kept under control by the Fed.

President Biden unveiled the framework for $1.75 trillion social-spending bill with extended CTC payments and climate change provisions that he said has the support of congressional Democrats.

The US economy grew at an annualized rate of 2 percent in third-quarter, according to an initial reading of gross domestic product, as a resurgence in COVID-19 cases further stretched global supply chains, leading to shortages of goods like automobiles that slammed the brakes on consumer spending. The reading, the slowest growth rate since the 2020 recession, was far weaker than expectations of 2.8 percent, and was down from 6.7 percent in the second quarter.

Pending home sales in the US fell 2.3 percent in September compared with August, the National Association of Realtors reported Thursday. Economists polled by MarketWatch had projected a 1 percent increase.

The European Central Bank on Thursday, as expected, left its monetary policy measures unchanged, saying it would continue to purchase assets via its pandemic emergency purchase program at a slower pace than seen in the second and third quarters.

US Federal Reserve is scheduled to hold its two-day rate-setting gathering November. 2-3, where it is widely expected to announce and start tapering of its monthly purchases of $120 billion in Treasurys and mortgage-backed securities.

Shaktikanta Das reappointed as RBI governor for 3 years

he Indian government said Shaktikanta Das has been re-appointed as the Governor of the Reserve Bank of India (RBI) for a period of three years beyond December 10, or until further orders, whichever is earlier.

Japan factory production slumps

Factory production in Japan slumped 5.4 percent in September from the previous month, official data showed on Friday, hurt by falling output of cars as well as general-purpose machinery.

Asian stock mixed in early trading

Asian stocks were mixed Friday after disappointing earnings from Amazon.com Inc. and Apple Inc. and as traders weighed bond-market gyrations on concerns over inflation and monetary tightening.

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Published on: Friday, October 29, 2021, 09:00 AM IST
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