Major Stock averages in the west closed sharply lower on Tuesday as sagging US Consumer confidence number coupled with weak Economic indicators from China reignited concerns over the recovery in Global economy. All key stock indices in Asia are trading in the red today morning.
On the home front too, The NSE Nifty is expected to witness an acute dip following the weak global sentiments. The Critical Support for the day is seen at 5194 and Nifty stays above this, then it may manage to arrest further down-fall. The first Resistance comes at 5236 and if it crosses-over this hurdle, we may see some positive momentum towards the Major Resistance at 5278. However if global cues remain weak, lower to the Critical Support, we may see another round of sell-off which may drag the index towards the Major Support at 5160. Below this, panic selling may push Nifty towards its Short-term Support at 5130.
Stock markets in the US declined sharply on Tuesday as lower than expected Consumer confidence data in US and weak Chinese economic indicators renewed global economic concerns. The Dow Jones industrial average dropped 2.7%. The Nasdaq composite fell 3.9% and The S&P 500 slid 3.1%.
European stock markets too fell as investors were worried regarding the expiry of the ECB's $500 Bln funding program on Thursday and as fears grew that the global recovery is fading. UK’s FTSE 100 dropped 3.1%; Germany’s DAX 30 fell 3.3% and France’s CAC 40 slumped 4%.
Crude Oil prices too slipped around 3% due to downbeat data on the Chinese and US economies. Currently it is trading near the $75 per barrel level. Base metals like Copper, Aluminum and Zinc too slumped around 3 to 5% due to growth concerns.
Asian markets are trading lower. China's Shanghai Composite dipped 1.20%, Hong Kong's Hang Seng fell 0.90%, Japan's Nikkei 225 shed 2.10% and Singapore's Straits Times reduced 0.65%.
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