Let’s explore the reason for slid in Stocks on US markets.
- All three US indices tumbled on the back high weekly unemployment claim for the first time in since March 2020.
- US corona cases crossed 4 million marks which constitute 1/4th of total cases.
- US investors are hopeful of Stimulus package announcement lifted stocks.
- Rising US & China tension after US government ordered to close China’s consulate in Houston on back of protection of American intellectual property and American private information.
- Asian markets are trading mix this morning. (7:30 A.M)
- SGX Nifty is in red note this morning. (7:30 A.M.)
Why US markets slide on Thursday?
- US stocks tumbled on heavy volume on the rise of weekly claim of 1.42 million compared to 1.3 million claim earlier. This lead to sharp fall in all the indices in US markets and stock took a deep dive on the this news.
- In US, corona cases surged to 4 million mark and constitute 1/4th of cases around the world is another negative for US stocks. Also there is surge in deaths resulted in dampening of investors sentiments.
- Investors are hopeful that US government will follow a similar move like European Union economical package of 750 billion Euro to support their economy.
- After year of stability between US- China the relationship again took back seat, as US government planned to close the China’s consulate in Houston on back of protection of American intellectual property and American private information.
- Dow Jones Industrial Average fall by 353.51 points, or 1.31%, close at 26,652.33.
- The S&P 500 tumbled by 40.36 points, or 1.23%, ends at 3,235.66.
- Nasdaq Composite Index slide by 244.71 points, or 2.29%, close at 10,461.42.
Asian Markets In Morning
|Indices||Current Value||Prev. Close||% Change|
|Nikkei 225 (Jul 22)||22,751.61||22884.22||-0.58%|
|Straits Times (Jul 24)||2,586.55||2612.35||-0.99%|
|Hang Seng (Jul 24)||25,038.89||25263.00||-0.89%|
|Taiwan Weighted (Jul 24)||12,444.44||12413.04||0.25%|
|Kospi (Jul 24)||2,216.16||2216.19||-0.04%|
|Jakarta Composite (Jul 24)||5,109.70||5145.01||-0.72%|
|Shanghai Composite (Jul 24)||3,293.46||3325.11||-0.89%|
|SGX Nifty (Jul 24)||11,162.00||11228.00||-0.59%|
Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 11150 level. Today strategy is to wait for dip at 11000 level and they buy Nifty future with a target 11200 level and stop loss 11050.
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Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in