Gift Nifty, Asian markets to rally in US stocks on cooling inflation - key global cues for Indian stock market
inflation data reinforced hopes that the Federal Reserve is approaching an interest-rate peak. In the US, data showed the producer price index climbed 0.1% in June, its smallest year-on-year gain since August 2020 and followed a 0.9% increase in May. A separate report showed initial claims for state jobless benefits dropped 12,000 to a seasonally adjusted 237,000 for the week ended July 8, but overall the labor market remains tight.
However, cooling inflation helped increase optimism that the Fed will stop hiking rates after an expected 25 basis points rate increase later this month. Investors will now focus on the second-quarter US earnings season kicking off this week, with companies like Wells Fargo & Company, BlackRock and Citigroup Inc. set to declare results on Friday.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 14th July Japan’s Nikkei 225 rose 0.84%, while the Topix fell 0.23%. South Korea’s Kospi gained 0.62%, while the Kosdaq added 0.37%. Hong Kong’s Hang Seng index futures traded over 20 points higher at 19,584. In Australia, S&P/ASX 200 rose 0.39%.
GIFT Nifty was trading at levels around 19,542 as compared to Nifty’s Thursday’s close of 19,413, indicating a higher start for the Indian index. All the three major US stock indices ended higher after data showed the annual increase in US producer inflation was the smallest in nearly three years. The S&P 500 gained 37.73 points, or 0.84%, to close at 4,509.89 points, while the Nasdaq Composite ended 219.35 points, or 1.58%, higher at 14,138.31.
The Dow Jones Industrial Average rose 44.48 points, or 0.13%, to 34,391.91. Chip stocks climbed, with Nvidia jumping 4.73% to a record high at $459.77. Among other stocks, PepsiCo shares
. Read more on livemint.com
