Stock Market Today: As mounting Covid cases in China scared investors who had anticipated the world’s second-largest economy to pick up steam following the relaxing of severe regulations, Indian equity benchmarks extended losses for the second straight session on Thursday.
Sensex and NSE Nifty
The BSE Sensex index, which had closed slightly lower the previous session, dropped 300.33 points to 60609.95 in early trade on Thursday. The larger NSE Nifty index also opened lower, reflecting a decline in larger Asian share markets along with rising oil prices.
The Thursday expiry could lead to an increase in volatility as traders attempt to settle their futures and options (F&)) contracts for the December derivatives, the final series of 2022.
MSCI index of Asia-Pacific shares
With Japan excluded, the broader MSCI index of Asia-Pacific shares was down more than 1% and was headed for its third consecutive week of losses.
Markets have remained subdued amid concerns that central banks’ attempts to control inflation could trigger an economic downturn. Concerns about how China’s economy will fare after the relaxation of Covid restrictions have also weighed on risky assets, with overnight trading on Wall Street ending in the red.
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Stock Market Today: S&P 500 index dropped
Futures contracts for European equities plummeted while those for the S&P 500 witnessed back-and-forth gains and losses as the S&P 500 index fell 1.2% to its lowest level in more than a month.
Optimism was dimmed in the final trading week of 2022 after a disastrous year for the financial markets due to the potential for greater pandemic damage to brittle supply chains as central banks fight to control inflation.
Worldwide bond index has fallen 16 per cent in Stock Market Today
Global shares have lost a fifth of their value, the largest annual loss since 2008, while a global bond index has dropped 16%. Due to the dollar’s 7% growth, the US 10-year yield has increased from 1.5% at the end of 2021 to above 3.8%.
According to Sameer Samana, Senior Global Market Strategist for Wells Fargo Investment Institute, on Bloomberg TV, China’s reopening “complicates the Fed’s job with respect to putting a little bit of a bid under oil prices, putting a little bit of a bid under inflation globally, and to aggregate demand.”
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