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Live stock market updates, Friday October 11, 2024: GIFT Nifty futures, trading at 25,088 around 7:30 am, slightly below the last close of Nifty futures, indicated a tepid start for Indian markets on Friday.
Equity benchmark indices BSE Sensex and Nifty 50 had ended in the green on Thursday.
The BSE Sensex climbed 140.75 points, or 0.17 percent, to close at 81,607.55, while the NSE Nifty 50 settled at 24,998.45, up 16.50 points, or 0.07 percent.
Across sectors, the Bank Nifty and PSU Bank indices outperformed other sector indices, each closing up 1 per cent. Stocks in financial services, automobiles and metals also finished in the green.
This apart, IT, pharma, FMCG and healthcare indices were the worst laggards for the day among sectoral indices, with losses of up to 2.01 per cent.
Meanwhile, markets in the Asia-Pacific region were mixed on Friday, deviating from Wall Street’s lower close overnight, which saw major benchmarks fall as investors digested a report on the persistently rising US inflation.
Japan’s Nikkei 225 index climbed 0.7 percent, while the broader Topix index edged up 0.40 percent.
South Korea’s Kospi rose 0.49 percent and the small-cap Kosdaq gained 0.36 percent.
Hong Kong’s Hang Seng Index was ahead 2.98 percent, while mainland China’s Shanghai Composite Index was down 1.16 percent and the CSI 300 was down 2.22 percent.
Australia’s S&P/ASX 200 index was down 0.15 percent.
That aside, global stocks were little changed while yields on longer-term U.S. Treasuries rose slightly on Thursday in choppy trading as investors assessed the Federal Reserve’s interest rate path after the data economic and comments from central bank officials.
U.S. consumer prices rose slightly more than expected in September due to higher food prices, but the annual rise in inflation was the smallest in more than three and a half years.
The Labor Ministry said the consumer price index rose 0.2 percent last month after gaining 0.2 percent in August, slightly above the expectations of economists polled by Reuters who expected on an increase of 0.1 percent.
In the 12 months to September, the CPI rose 2.4 percent compared to an estimated 2.3 percent.
Other data showed that weekly jobless claims jumped from 33,000 last week to a seasonally adjusted 258,000, well above the estimate of 230,000, although the rise was partly attributed to distortions caused by the Hurricane Helene.
This data initially helped shore up expectations that the Federal Reserve would cut interest rates next month, but expectations have slipped slightly to almost an 80 percent chance of a 25 basis point (bps) cut. after comments from several Federal Reserve officials, down from nearly 90 percent. immediately after the numbers were released, according to CME’s FedWatch tool. Expectations for a 25 basis point cut then rose again to 86.3 percent.
Atlanta Federal Reserve President Raphael Bostic said in an interview with the Wall Street Journal that he would be “completely comfortable” not cutting interest rates at an upcoming meeting from the US central bank, adding that the “instability” of recent data on inflation and employment could justify keeping rates unchanged in November.
A week ago, the market had predicted a 32.1 percent probability for another outsized 50 basis point cut.
On Wall Street, stocks finished lower but off their worst levels of the session, with the rate-sensitive housing index the worst performer of the S&P’s 11 major sectors.
The Dow Jones Industrial Average fell 57.88 points, or 0.14 percent, to 42,454.12, the S&P 500 fell 11.99 points, or 0.21 percent, to 5,780.05, and the Nasdaq Composite fell 9.57 points, or 0.05 percent, to 18,282.05.
The MSCI world stock index slipped 0.18 points, or 0.02 percent, to 848.46, offsetting earlier declines.
In Europe, the STOXX 600 index closed down 0.18 percent ahead of France’s 2025 budget.
Markets lowered expectations that the Fed would be aggressive in cutting interest rates after releasing a strong U.S. jobs report on Friday.
Fed Chairman Jerome Powell and other central bank officials have indicated that the Fed has shifted its primary focus from fighting inflation to labor market stability.
The yield on U.S. benchmark 10-year bonds edged up 0.4 basis points to 4.071 percent after hitting 4.12 percent, while the yield on 2-year bonds, which typically moves in line with Interest rate expectations, fell 5.6 basis points to 3.962 percent. .
The dollar index fell 0.03 percent to 102.85 after rising as much as 0.27 percent.
Against the Japanese yen, the dollar weakened 0.51 percent to 148.53. Bank of Japan Deputy Governor Ryozo Himino said Thursday the central bank would consider raising interest rates if the board was “more confident” in achieving its economic and price forecasts.
Oil prices jumped after two sessions of declines, boosted by a surge in fuel demand following Hurricane Milton hitting Florida, supply risks in the Middle East and signs that demand from United States and China could also provide support.
US crude rose 3.56 percent to $75.85 a barrel and Brent rose to $79.40 a barrel, up 3.68 percent on the day.
(With inputs from Reuters.)