Global Stock Exchanges

Taiwan stock market expected to remain rangebound

The Taiwan stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had dropped almost 90 points or 0.6 percent. The Taiwan Stock Exchange now sits just above the 17,075-point plateau although it’s expected to bounce higher again on Friday. The global forecast for the Asian markets suggests lid upside, with optimism over interest rates offset by weakness from crude oil prices. The European markets were up and the U.S. markets were mixed and the Asian markets figure to split the difference. The TSE finished modestly lower on Thursday following losses from the technology stocks and a mixed performance from the financials. For the day, the index dipped 43.30 points or 0.25 percent to finish at 17,078.86 after trading between 17,061.46 and 17,219.65.

Sensex, Nifty close in the red

Sensex and Nifty closed in the red on Wednesday. The brief rally on PSU banks and IT gains withered as both indices came under pressure. Broader indices also traded in red.

Benchmark indices closed in the red after paring early gains and slipping back from a brief rally into the green in the post noon session on banking and IT stocks. The markets traded largely sideways in green in the forenoon session. Banking and auto sectors were the top drags on the markets towards the end of trade. Selling pressure kept indices muted on the last day of trading in Samvat 2077.

Since the last few trading sessions Nifty has been making lower Highs and lower lows, which is a bearish sign. Nifty closed negative by 60 points at 17,830 after taking resistance at 17,990. Nifty has support in 17,800-17,650 range and resistance in 17,950-18,050 range. Traders are advised to be cautious in long positions and maintain strict stoploss.

JPX-Nikkei index 400 selection criteria to be revised

Nikkei Inc. and Tokyo Stock Exchange announced on Friday that they will revise their criteria for selecting the component issues of JPX-Nikkei Index 400, a stock index they jointly develop and operate. Nikkei and TSE will attach greater importance to return on equity — the ratio of net income to shareholders’ equity — starting with a periodic review of the constituent stocks in the summer of 2022. When narrowing down targets for selection under certain conditions, Nikkei and TSE will significantly downgrade their assessment of not only issues whose ROE are negative but also those whose ROE are in the bottom 10 percent. The eligible market of the index will become Prime, Standard and Growth markets from the reorganization of the TSE into three new market segments in April 2022. In addition to profitability, Nikkei and TSE will strengthen their assessment of corporate governance, which is drawing increasing attention from investors, under the revised selection criteria. Stocks of companies will be evaluated highly if a majority of their directors are appointed as independent outside directors.

France’s benchmark equity index breaches 7,000 points barrier

France’s benchmark CAC-40 equity index breached the 7,000 points barrier for the first time in its history on Friday, as European stock markets set new record highs on the view that interest rate increases are not imminent. The CAC-40 was up 0.2 percent at 7,002.21 points by 0813 GMT, marking a new record high set by the index.

Frankfurt’s DAX index closes above 16,000 points

Germany’s bluechip DAX index closed above the 16,000 mark for the first time ever on Thursday, a day after the Federal Reserve said it would start “tapering” its pandemic support programme. The Frankfurt index finished 0.44 percent higher at 16,029.65 points, after briefly climbing to a new all-time high of 16,064.79 points earlier in the session.

FTSE 100 gains on commodity boost

London’s FTSE 100 rose on Thursday, led by commodity-linked stocks, while investors awaited a key Bank of England policy decision amid expectations of it becoming the first major central bank to hike rates since the pandemic. The central bank is due to make its announcement at 1200 GMT against the backdrop of soaring prices and supply-chain problems. Equity markets have fully priced in an increase in the Bank Rate to 0.25 percent from 0.1 percent, while economists remain split. The benchmark FTSE 100 index gained 0.3 percent by 0820 GMT, with miner Glencore, oil major Royal Dutch Shell and telecommunications company BT Group among the best performers. BT Group added 3.7 percent after confirming its outlook for this year while reporting a 3 percent decline in first-half revenue.

S&P 500 closes at another record

The S&P 500 rose for a sixth day in a row on Thursday as investors took solace in the Federal Reserve’s patient stance on raising interest rates. Stronger-than-expected economic data also boosted sentiment. The broad equity benchmark gained 0.4 percent to hit another record close of 4,680.06. The tech-heavy Nasdaq Composite rose 0.8 percent to an all-time closing high of 15,940.31. The Dow Jones Industrial Average dipped 33.35 points, or nearly 0.1 percent, from a record to 36,124.23 as Goldman Sachs and JPMorgan struggled. The central bank said it will begin to slow its bond-buying program later this month, signaling that the economy can now handle an unwinding of pandemic stimulus. Investors had long anticipated the move and liked that the Fed did not signal it would be any more aggressive than necessary in raising interest rates once the bond tapering was finished next year.

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