US stocks continued to trade lower ignoring warmer than expected jobs reports over stunning failure of SIVB that rattled investors' confidence. Dow fell 1.06%, S&P lost 1.45% and Nasdaq closed 1.76% lower.
USD index and 10 year closed sharply lower as participants rushed to safety on bank failure news. USD fell near 104.30 and 10 year fell to 3.70%. Also, US 2 year fell the most since 2008. Cboe vix also jumped near 25 as fear gauge rose sharply on worries over contingent.
Crude futures traded in a narrow range, WTI traded near 76, Brent near 82.
Indian stocks continued to slide for the second day in a row on worries over bank failure and aggressive FED rate hike. Sensex lost 672 points and Nifty closed 177 points lower led by BFSI names that got spooked by US news. IT names along with Power stocks saw some gains in an otherwise dull market.
Global market sentiments and key inflation data may dominate trade at the start of the new trading week. Participants may continue to watch out for opportunities outside indices as certain pockets / stocks have started to show signs of major breakout from consolidation /downtrend and hold promise for medium to long term.
Participants may note that the steps taken by US administrators may smoothen the nerves on equity side for the moment but the same doesn't ensure 'all is well' at US banking system. For the immediate term the important factors to watch are US inflation data due tomorrow and day after and FED meet next week, till that point avoid large commitments on either side and look out for breakouts beyond indices / popular names.
By: via Telegram.me/AlliesFin #StockMarket #india
