ASIAN MARKETS, US FUTURES TUMBLE AS US-CHINA TRADE TENSION ESCALATE

ASIAN MARKETS, US FUTURES TUMBLE AS US-CHINA TRADE TENSION ESCALATE

WORLD MARKETS

US indices climbed 0.8%-1.6% on Friday, with Nasdaq hitting a record high, on the back of robust jobs data.

The U.S. economy added a robust 263,000 jobs in April while the unemployment rate fell to 3.6%, the lowest since December 1969. These figure were much better than the expected figures of 1,90,000 and 3.8% respectively.

WTI crude rose 13 cents to $61.94 a barrel while Brent rose 10 cents to $70.85.

European markets gained 0.2%-0.6%. Euro zone inflation advanced to 1.7% in April, up from 1.4% a month ago and beating the estimated figure of 1.6%.

For the week, Dow fell 0.2%, Nasdaq was flat while S & P 500 rose 0.2%. In Europe, FTSE and CAC were down 0.6% and 0.4% respectively while DAX was up 0.8%. In Asia, Nikkei was shut for the whole week, Indian and Chinese market fell about a third of a percent while Hang Seng surged 1.6%.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices slipped in late noon trade to end with modest cuts, extending the losing streak to third straight day. Sensex settled at 38963, down 18 points while Nifty lost 12 points to finish at 11712.  BSE mid-cap and small-cap indices fell 0.1% and 0.3% respectively. BSE IT and Teck indices tumbled 1.9% and 1.5% respectively, becoming top losers among the sectoral indices while Realty and Telecom indices were the top gainers, up 1.6% and 1.2% respectively.

FIIs net sold stocks worth Rs 401 cr but net bought index futures and stock futures worth Rs 153 cr and 548 cr respectively. DIIs were net buyers to the tune of Rs 57 cr.

Rupee appreciated 14 paise to end at 69.21/$.

For the week, Sensex and Nifty fell 0.3% and 0.4% respectively.

HUL Q4 results were a slight miss. Revenue rose 9.3% y-o-y while volume growth stood at 7%

OUTLOOK

In a dramatic development, Trump said in a tweet Sunday that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.” It is feared that China is considering cancelling its trade talks with the U.S. this week in light of Trump’s latest threats.

Owing to this development, China and Hang Seng have opened with cuts of nearly 3% today and US futures are down nearly 2%. SGX Nifty is suggesting about 60 points lower start for our market.

For past couple of days, we have been mentioning that 11796-11624, top-bottom made on 25th April, is the immediate range to watch, a crossover of which, on either side, is required for a fresh move.

Nifty, on Friday, closed at 11712 and is set to open near 11650 today.

11624 continues to be immediate support. If that gets breached, 34-DMA, placed around 11600, followed by 11550 would be next supports to eye.

11796 continues to be immediate hurdle.

51 constituencies across 7 seven states will go for polling today in the fifth phase.