Crude oil new high makes market downtrend

Indian Stock Markets have slipped sharply in the opening trades on back of heavy overnight losses in the US markets and a weak start to the equity markets across Asia. Further the sentiments have also dampened as US light crude oil for July delivery set a closing record of $133.17 in New York Mercantile Exchange trading, up more than US$4 per barrel and then proceeded to march to another record intraday high of $134.10 in electronic trading after the settlement.
Among the 30-scripts of Sensex, 27 stocks are in red and only 3 stocks are in green. Reliance Industries, ICICI Bank, L&T and HDFC Bank are among the major laggards. At 10:00 am (IST), the BSE 30-share Sensex slipped 193 points at 17,049 and NSE Nifty was down 49 points at 5,068.
Asian stocks fell for a third day today, extending a global slump, after oil rose to a record and the Federal Reserve signaled it is done cutting interest rates.
The MSCI Asia Pacific Index fell 1% to 150.49 as of 11:34 a.m. in Tokyo, with almost four stocks dropping for each that climbed. All 10 industry groups declined. All of Asia's benchmark indexes retreated, with Japan's Nikkei 225 Stock Average declining 1.2% to 13,762.27.
US stocks sank on Wednesday as crude oil surged further on a surprising weakness in government's weekly fuel supply report. Sentiment also got hit after the minutes from the Federal Reserve's last meeting showed policy makers were reluctant to cut rates.
The S&P 500 slumped 22.69 points, or 1.6%, to 1,390.71. The Dow Jones Industrial Average slid 227.49 points, or 1.8%, to 12,601.19. The Nasdaq Composite Index dived 43.99 points, or 1.8%, to 2,448.27.
Stocks in Europe fell on record crude prices, resulting in sharp losses for automakers and airlines. The pan-European Dow Jones Stoxx 600 index fell 0.9% to 323.16 as crude-oil prices run up as high as $132.08 a barrel. The UK's FTSE 100 edged up 0.1% to 6,198.10, while the German DAX 30 fell 1.1% to 7,040.83 and the French CAC-40 dropped 0.5% to 5,027.55.

In the emerging markets, the Bovespa in Brazil slid 1.7% to 72,294 while the IPC index in Mexico was down 1.3% at 31,126. The RTS index in Russia gained 0.6% to 2467 while the ISE National 30 index in Turkey fell 0.75% to 50,360.

1 comments:

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