Sensex Headed For A Big Fall After Wall Street Bloodbath: 10 Updates
Indian stock markets are set to open with deep cuts today with Nifty futures on Singapore exchange trading 242 points lower at 10318. Asian stocks tumbled to two-month lows on Friday after Wall Street shares suffered yet another big slide in the face of rapidly-rising bond yields. Japan's Nikkei slumped over 3 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan dropped 2.3 percent to a two-month low.
- Asian stocks tumbled to two-month lows on Friday following Wall Street
- Overnight, US stocks plunged, with Dow closing 4.1% lower, S&P 500 3.7%
- Both US indices entered correction territory, down 10% from record highs
Here are 10 updates:
1) US markets remained the epicentre of the global sell-off, with the Dow plunging 4.1 per cent and the S&P 500 sinking 3.7 percent overnight.
2) With Thursday's losses, both the S&P 500 and the Dow slid into correction territory, falling more than 10 per cent from January 26 record highs.
3) Since January 26, the S&P 500 has lost $2.49 trillion in market value, according to S&P Dow Jones Indices.
4) US stocks began to wobble last Friday after a healthy U.S. labour market report sparked a spike in bond yields and fears of rising inflation which could trigger more central bank rate hikes.
5) Higher yields are seen hurting equities as they increase borrowing costs for companies and reduce their risk appetite. They also present a fresh alternative to investors who may reallocate some funds to bonds from equities.
6) The yield on the benchmark 10-year Treasury note rose as high as 2.884 percent on Thursday, just below Monday's four-year high of 2.885 percent.
7) Treasury yields were pushed higher after the Bank of England said British interest rates probably need to rise sooner, adding to expectations of reduced central bank stimulus globally, compounded by U.S. Senate leaders agreeing to a budget deal that would increase government borrowing.
8) Treasury yields have also been pushed up by the prospect of increased debt issuance to fund fiscal spending under US President Donald Trump, inflation worries, and expectations of the Federal Reserve raising rates sooner and more frequently than was expected.
9) The dollar index against a basket of six major currencies was flat at 90.238 after touching a two-week high of 90.567 overnight.
10) Sensex had risen nearly 1 per cent on Thursday, snapping seven sessions of fall, as market heavyweights such as Infosys Ltd and Housing Development Finance Corp helped the indexes end their longest spell of losses since September.
(With agency inputs)