Sensex Rises after Policy Makers Pledge|Finance Brokerage
Sensex gained as policymakers pledged to support the economy to combat the impact of COVID-19. Recent global policy responses to the outbreak have boosted Asia stocks’ performance.
While treasuries edged higher, US stocks lowered from Wednesday. S&P 500 slid with a state of emergency in California. Congress has authorized nearly $8 billion in funds for virus prevention, causing more than a 4% surge.
S&P BSE Sensex Index climbed 0.2% to 38,477.92 (Mumbai) while NSE Nifty 50 Index rose to 0.1%
The Indian company jumps to nearly 300 points in early stock trading while Nifty tests at 11,300.
India’s infections are now at 28, prompting the governments to step up testing measures.
India’s central bank joined the wave of global bank action with options to support the nation’s economy through the public health crisis.
The Bank of Canada has also joined in and Australia’s finance minister on Thursday said the stimulus would come very soon.
Asian Countries’ Stock Moves
Japan’s Topix index rose 1% followed by South Korea’s Kospi which climbed 1.3%. In Hongkong, Hang Seng rose to 2% while The Shanghai Composite added 1.9%.
Futures on the S&P 500 Index dipped 0.5% as Euro Stoxx 50 futures added 1.1%. Australia’s S&P/ASX 200 Index gained 1.1% and MSCI Asia Pacific Index rose to 1.2%
The Company’s Biggest Boost
Sensex’s biggest boost was Hindustan Unilever, which had a 3.1% gain. Seventeen of the 19 sector indexes have gained and were led by metal companies
Treasuries Nudged Higher
Sensex rose in the stock market along with its Asian peers while treasuries nudged higher. This is a sign that investors see more US stimulus coming.
Sudip Bandyopadhyay, chairman at Mumbai-headquartered Inditrade Capital Ltd, said the market will continue to see volatility. There is short covering after the US market gains and declines were also kind of due given the economic slowdown. He added weak corporate performance from this point of view.
Ben Emons, managing director of global macro strategy at Medley Global Advisors, said the market takes this as credible enough. There is some recovery coming ahead as a result of the current action.
The S&P 500 has surged 6% after the Federal Reserve pledged support, remaining at almost 8% below from last month.
As for currencies, the euro bought $1.1135, while the yen rose 0.1% to 107.42 per dollar. The offshore yuan slid 0.2% to 6.9360 per dollar.
For bonds, the yield on 10-year Treasuries dropped three basis points 1.02% while Australia’s 10-year yield rose six basis points to 0.78%.
For commodities, West Texas Intermediate crude rose 1.5% to $47.46 a barrel as gold added 0.2% to $1639.72 an ounce.
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