A declining trend has been seen in the market on the first day of the trading week i.e. Monday. Both Sensex and Nifty opened in the red. Talking about Sensex, at 9.30 am, Sensex fell by 580 points at 76,798 points and Nifty fell by 180.75 points at 23,250 points. Uncertainty over inflation data, weak global cues and December quarter (Q3FY25) results have led to heavy selling in the market.
What do global signals say?
Asia-Pacific markets had a weak start to the week. Expectations for an initial rate cut by the Federal Reserve diminished after strong US jobs data on Friday.
Australia’s ASX 200 fell 0.84% and Korea’s Kospi also fell 0.4%. Japanese markets were closed today for a holiday.
China’s trade data is due today
China will release December trade figures today. At the same time, investors are keeping an eye on Chinese bond yields. Last Friday, China’s central bank stopped buying government bonds, sending the 10-year government bond yield to a record low.
The onshore yuan hit a 16-month low against the dollar last week, while the offshore yuan has been falling since September. On Friday, China’s CSI 300 index closed at its lowest level since September 2024.
Many major economic updates are coming this week. Inflation data in America will be released on Wednesday. The Central Bank of South Korea will meet on Thursday. China will release fourth-quarter gross domestic product, retail sales and industrial production data on Friday. Apart from this, Australia’s unemployment rate figures for the month of December will also be released.
There was a huge decline in American stock markets on Friday. The Dow Jones closed down 1.63%, the S&P 500 fell 1.54% and the Nasdaq fell 1.63%. The US added 256,000 new jobs in December, more than the estimate of 155,000. The unemployment rate also fell to 4.1%. Strong employment data pushed Treasury yields higher, with the 10-year Treasury yield reaching its highest level since late 2023.
