Stock markets in Asia, US tumble after biggest interest rate hike in 22 yrs

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London, May 6 | Stock markets in Asia and America have tumbled after the US Federal Reserve this week announced the biggest interest rate hike in 22 years.

The sell-off comes as worries intensified over how rising prices, and the Federal Reserve’s steps to rein them in, will affect economic growth, the BBC said in a report.

Major share indexes in Hong Kong and mainland China dropped on Friday in Asia. That came after shares in New York fell sharply, led by technology stocks.

Hong Kong’s benchmark Hang Seng index fell by 3.6 per cent, while shares on the Shanghai Stock Exchange were down by 2.3 per cent and Australia’s ASX 200 was 2.4 per cent lower, BBC reported.

Those falls followed the Dow index, which includes big names such as Apple and Nike, sliding on Thursday by more than 1,000 points to end 3.1 per cent lower.

The wider S&P 500 fell 3.6 per cent, while the tech-heavy Nasdaq plummeted by almost 5 per cent.

The losses wiped out the gains the markets had enjoyed on Wednesday, after the Federal Reserve announced it was raising its benchmark rate by half a percentage point to 0.75 per cent to 1 per cent.

That move, which will make borrowing more expensive, had been expected.

Analysts said investors were relieved that the bank had not moved even more aggressively, with Federal Reserve chairman Jerome Powell saying that a bigger rate hike was not under “active consideration”.

But Thursday’s losses suggested that worries remain about whether the Fed will be able to slow economic activity enough to cool price increases without tipping the economy into recession – defined as the economy getting smaller for two consecutive quarters, the BBC reported.

Rising prices are also being driven by factors outside the central bank’s control, such as spiking energy prices due to the war in Ukraine.

Source: IANS

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Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

The NIFTY 50 recouped the previous day’s losses and ended at 2.89 percent higher on strong global cues after China cut key lending rates. Nifty continued its upside rally throughout the day as it ended at 16266.15 levels. Bank nifty closed the session at 34276.40 level with a gain of 960 points. VIX closed at 23.10 down by 5.94%.

48 stocks out of NIFTY 50 closed in green which suggest broad based buying. All the sectoral indices are trading higher with metal, pharma, PSU bank and realty indices up 2-3 percent each. Stocks like DRREDDY, JSWSTEEL, NESTLEIND, TATAMOTORS & TATASTEEL were the top gainers, While SHREECEM & UPL were only two losers. The Nifty has formed Open Bullish Marabozu on a daily time frame which indicates upside momentum for an upcoming session.

Moreover, Nifty has been trading in a range of 15750-16410 levels throughout the week, crossing either side can direct further direction. In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounceback from lower levels can be seen.

However, the momentum indicators MACD & Stochastic were trading witha positive crossover & reversed from oversold zone on an hourly chart which suggest a northward journey in Nifty. The Nifty may find Strong support around16000 levels, while on the upside 16410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33200 levels while resistance at 34800levels.

Palak Kothari
Research Associate
Choice Broking

Source: Choice India

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