In the pre-open session, SGX Nifty, the futures contract based on the Nifty 50 index and listed on the Singapore-based Exchange SGX, displayed a lackluster performance, trading at a standstill with a mere 0.06% or 11-point increase at 8:52 am on Monday. This slight uptick hinted at a potentially flat opening on Dalal Street, the renowned financial hub of India.
Meanwhile, the Dow Jones Futures experienced a slight dip of 0.12%, while the Nasdaq 100 Futures showcased a modest advance of 0.13%. The major US indices faced a downturn on Friday, with notable giants like Microsoft (NASDAQ:MSFT) leading the descent. The market’s buoyant sentiment, driven by the belief that the central bank would be nearing the end of its rate hike cycle, was overshadowed by remarks from two Federal Reserve officials.
During the eventful week, the Nasdaq Composite witnessed a decline of 0.68%, the Dow Jones dropped by 0.32%, and the S&P 500 experienced a decline of 0.37%. Nevertheless, these indices managed to accumulate gains of 3.2%, 1.2%, and 2.6%, respectively, throughout the week, despite the setbacks.
On June 19, US markets will remain closed in observance of Juneteenth, commemorating the end of slavery in the United States.
In Asia, shares exhibited a predominantly downward trend on Monday, following a remarkable week that marked one of the most successful performances in nearly five months. Investors eagerly awaited key events such as the announcement of the People’s Bank of China Loan Prime Rate and the testimony of Fed Chair Jerome Powell, both of which pertained to the economic outlook and recent monetary policy actions.
Despite the slight dip in early trade on Monday, Japan’s Nikkei 225 index continued to inch closer to its 33-year peak. As of 8:54 am, the Nikkei displayed no significant change, while South Korea’s KOSPI witnessed a decline of 0.68%. Hong Kong’s Hang Seng index experienced a considerable drop of 1.3%, China’s Shanghai Composite reduced by 0.6%, and Australia’s ASX 200 managed to rise by 0.66%.
Oil prices faced a sharp decline on Monday, as investors awaited interest rate cuts from China, a major importer. Attention also remained focused on the monetary policy decisions of the United States. Brent crude took a significant tumble, plunging by 1.5% to $75.46 per barrel, while WTI Futures were valued at $70.94 per barrel. In addition, Natural Gas Futures experienced a decline of 1.64% during this period.