Gift Nifty trades flat, Asian markets fall after sell-off on Wall Street; key global cues for Indian stock market
labour market data spurred the threat of inflationary pressures, leaving room for more rate hike by the Fed. Earlier, the minutes of the Federal Reserve’s June meeting also showed that most central bank officials would support more interest rate increases ahead. In Asia, Japanese household spending fell 4.0% in May from a year earlier, a third month of decline, government data showed, Reuters reported.
A decline in Asian stocks also followed a plunge in shares of Samsung Electronics Co Ltd after the world's largest memory chip and smartphone maker estimated 96% fall in second-quarter operating profit led by an ongoing chip glut. The company estimated its operating profit fell to 600 billion won ($458.83 million) in April-June, from 14.1 trillion won a year earlier in a short preliminary earnings statement, as per Reuters report. Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 7th July Japan’s Nikkei 225 declined 1.13%, while the Topix dropped 1.1%.
South Korea’s Kospi fell 1.14%. Hong Kong’s Hang Seng index futures also hinted at a lower opening. Australia’s S&P/ASX 200 fell 1.8%.
Gift Nifty was trading 9.50 points, or 0.05%, higher at 19,497.50, indicating a lower start for the Indian indices. US markets ended lower after private hiring data underlined the inflationary threat from the strong labor market, adding fears of aggressive interest rate hike by the Federal Reserve. This pushed Treasury yields sharply higher and dragged equities lower.
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