Markets to Open Lower On Global Worries

In a step to boost Japanese economy, the Japan Prime Minister Shinzo assure to reduce the corporate tax rate yesterday. After this move, the Japanese equity market surged by 7.7 per cent in a single trading session, highest one-day jump in last seven years. This fantastic surge in Japanese equity markets spread considerable bullish sentiments across Asian markets.

India too was not exception for this event. Indian market gave a good opening on account of positive market sentiment. At the end of yesterday’s trading session, Nifty settled with 130.35 points gains at 7818.60 levels. Market breadth for the Nifty Index has remains strong and the advance decline ratio ended on the positive side. 42 stocks closed with green mark whereas, only 8 stocks closed in red.

European markets too were excited with the Japanese stimulus. The European equity markets open strong at opening, however some profit booking seen at the end of trading session. Still the UK’s FTSE 100, Germany’s DAX and French CAC 40 indices were closed higher by 1.35, 0.31 and 1.44 per cent on yesterday’s trading session.

However, the US equity markets failed to show cheer after Japanese market’s record move. The US markets closed lower as concerns of potential rate hike intensified by a record rise in job openings in July and downturn in crude oil price as new stimulus measures by China and Japan indicating slowing economies. The S&P 500, the Dow Jones Industrial Average and the Nasdaq slumped by 1.39, 1.45 and 1.15 per cent respectively yesterday.

Today morning, the asian markets too corrected from yesterday’s gain as global concerns about slowing global growth weighed over the bulls. This pain also exaggerated when Japan’s capital spending data fell in a second straight month in July signaling that the economy is struggling to get back on track. The Japanese Nikkie, Singapore Hang Seng and Australian ASX were trading lower by 2.85, 2.38 and 2.25 per cent in today morning.

The premarket barometer of India equity market, SGX Nifty was too trading lower by 1.14 per cent in the morning. We too expect the Indian equity markets too open lower on global worries.