This is the excerpts from my morning market view that is posted early in the morning in my blog. This is not a prediction or trading tip. This is an analysis of premarket macro narrative.
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Premarket analysis: 01 July 2020
Positives:
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Global markets closed in green yesterday
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Purchasing manager’s index shows rebound in economic activity
Negatives:
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FIIs net selling in cash market increases
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Cautious mood among Institutional investors
Global Markets: -Sideways coil
US and European markets are still stuck in consolidation range although they closed in green yesterday. Risk assets such as High yield bonds, Emerging market ETF traded in US and EM currencies were on sideways wind. US dollar index and Japanese yen consolidated. Industrial metal copper continued to claim up on the back of China’s economic recovery and stimulus hopes. However, Gold which is a safe haven continued to shoot up mirroring cautiousness among investors.
Manufacturing Purchasing managers index points to slowdown in contraction of economies in the month of June.
ASIAN Markets this morning: - Mixed
Asian markets started the quarter quietly. Markets were mixed and directional less this morning. They are well within the consolidation range. SGX Nifty is trading almost flat compared yesterday’s July futures’ close at NSE.
Calendar Events:
Fiscal deficit numbers and infrastructure output numbers released yesterday were not inspiring. India achieved current account surplus after almost 13 years. This is not good news either because, current account surplus was on account lower imports which happens when economy shrinks.
Purchasing manager’s Index for India will be out by 10.30 AM which will offer hints about how manufacturing fared in June. Market expectation is 37.5 Vs previous reading of 30.8
India : -Economy is still in danger
There are no indications yet that economy has bottomed out in India. Institutional investors and FIIs have been pointing out that the emerging markets like India does not have sufficient room to offer stimulus to fire up the economy. Hence the views of institutional investors points to their worry that economic recovery could be delayed in India
How will Nifty perform today? check it out here
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