For the week, the S&P rose 1.62 percent while the Dow added 2.76 percent and the Nasdaq gained 1.21 percent while the FTSE 100 index closed 0.30 percent lower with the index ending the week half a percent lower
The Nifty50 opened the week at 10,765.95 on Monday and closed at 10,767 on Friday. But it hit a low of 10,633.15 on 5 June and a high of 10,818 on Thursday.
For Friday, Nifty index opened negative but managed to hold on to its immediate support of 10,700 – 10,720 zones and recovered towards its crucial hurdle of 10,770-10,780 zones. For the week the Sensex was up 0.61 percent while the Nifty gained 0.67 percent.
Sentiments in the Indian bond markets continued to remain weak as 10-year bond yield climbed above 8 per cent amid concern about quickening inflation and the government’s budget deficit.
Midcap & Small Capitalisation stocks that were already under pressure in the last few weeks saw more weakness after market regulator placed some
companies under additional surveillance — or ASM to check abnormal rise in stock prices that does not commensurate with the financial health of companies.
The Reserve Bank of India hiked interest rate by 25 bps for the first time since 2014. Monetary policy committee (MPC) maintaining policy stance at “neutral” now expects retail inflation at 4.8-4.9 percent in the first half of the year and at 4.7 percent in the second half of the year. The MPC sees GDP growth at 7.4 percent in FY19.
On the macro front, the government will announce industrial production data for April 2018 on Tuesday, 12 June 2018. India’s industrial output grew 4.4 percent year-on-year in March 2018, following a downwardly revised 7 percent advance in the previous month.
US stock indexes closed higher on Friday as investors shrugged off concerns about global trade tensions but trading volume was relatively light ahead of a busy week of central bank meetings. The S&P 500 stayed in positive territory in the afternoon after reversing losses in the early afternoon with its biggest boosts coming from the health care and consumer staples sectors.
The Dow Jones Industrial Average rose 75.12 points, or 0.3 percent, to 25,316.53, the S&P 500 gained 8.61 points, or 0.31 percent, to 2,778.98 and the Nasdaq Composite added 10.44 points, or 0.14 percent, to 7,645.51. For the week, the S&P rose 1.62 percent while the Dow added 2.76 percent and the Nasdaq gained 1.21 percent.
US consumer credit rose by USD 9.2 billion in April after climbing by USD 12.3 billion in March. Economists had expected consumer credit to increase by USD 13.8 billion. The increase in consumer credit was primarily due to growth in non-revolving credit such as student loans and car loans, which rose by USD 7 billion in April after climbing by USD 13.4 billion in March.
US initial jobless claims edged down to 222,000, a decrease of 1,000 from the previous week’s revised level of 223,000. Economists had expected jobless claims to rise to 225,000 from the 221,000 originally reported for the previous week.
US trade deficit narrowed to USD 46.2 billion in April from a revised USD 47.2 billion in March. Economists had expected the deficit to come in unchanged compared to the USD 49 billion originally reported for the previous month.
Asian stocks closed lower on Friday, with major markets in the region recording declines as investors sentiment turned cautious after recent gains seen earlier in the week. The Nikkei 225 declined 0.56 percent, or 128.76 points, to close at 22,694.50 while South Korea’s Kospi edged down by 0.77 percent to 2,451.58.
In Hong Kong, the Hang Seng fell 1.8 percent after logging a six straight days of gains. The Shanghai Composite finished 1.4 percent lower, and the Nikkei lost 0.6 percent.
Japan’s gross domestic product was down 0.2 percent on quarter in the first three months of 2018. That was unchanged from the May 16 preliminary reading, although it defied expectations for an upward revision to -0.1 percent. On a seasonally adjusted annualised basis, GDP was also unchanged at -0.6 percent, missing forecasts for -0.4 percent.
The Stoxx Europe 600 Index fell 0.2 percent to close at 385.12, ending the week 0.5 percent lower. The FTSE 100 index closed 0.30 percent lower with the index ending the week half a percent lower. However, the CAC registered a gain of over 2 percent for the week, up 2.5 percent.
Eurozone Gross domestic product grew 0.4 percent sequentially in the first quarter, slower than the 0.7 percent expansion seen a quarter ago. The rate came in line with the estimate released on May 15. On a yearly basis, GDP growth slowed to 2.5 percent, as estimated, from 2.8 percent a quarter ago.
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