What changed your market while you were sleeping

Good morning!

Former FBI director James Comey’s testimony, ECB’s policy review and UK elections will loom over stock markets globally and keep them on the tenterhooks on Thursday.
Let’s check out what all might matter to Dalal Street today.

Singapore trading sets stage for muted opening
At 6.25 am, Nifty50 futures on the Singapore Stock Exchange were trading 11 points higher at 9,697, indicating a flat opening for the domestic market. “The swing high of 9,709 is a key hurdle to watch out for. Further extension of the wave structure is possible only if the high is taken off. Overall, we maintain our positive stance on the index with a cautious approach,” said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.

Nifty makes Doji pattern on the daily chart
The index formed a ‘Doji’ pattern on the daily chart. Analysts said holding on to the 9,650 level on a closing basis can bring further upside for the index, adding that any level below 9,630 may trigger profit booking.

Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Financial Services noted that the index also formed an ‘Insider bar’ for the day. The index respected the previous day’s low of 9,630 and needs to hold above 9,650 if it were to extend the rally towards 9,700 and 9,750 levels, the analyst said.

Comey testimony
US stocks ended higher on Wednesday after written testimony from former FBI director James Comey did not add major revelations about an investigation into Russian meddling with last year’s US presidential election. AP reported that Comey will say in his opening statement to a congressional hearing that President Donald Trump told him, “I need loyalty. I expect loyalty” during a January dinner, according to documents released a day ahead of the planned testimony. He also confirms Trump’s statement that Comey told the President several times that he was not personally under investigation, the report added.

British vote today
The UK goes to voting on Thursday in a ‘snap election’ announced by Prime Minister Theresa May in mid-April. She called for an early general election, claiming that divisions at Westminster risked hampering the Brexit negotiations.

ECB meeting
The European Central Bank is likely to keep the money taps fully open at its meeting on Thursday, as inflation remained below its target despite stronger economic growth in the euro zone, said a Reuters report. The ECB is expected to keep policy unchanged on Thursday, including its 2.3 trillion euro ($2.59 trillion) bond-buying programme and sub-zero interest rates, despite resistance from cash-rich Germany, the report added.

Last-minute rescue
European authorities stepped in to avert a collapse of Spain’s Banco Popular following a run on the bank, orchestrating a last-minute rescue on Wednesday by Santander, the country's biggest lender, Reuters reported. Owners of popular bonds face losses of some 2 billion euros, while Santander will ask its shareholders for around 7 billion euros ($7.9 billion) of capital to absorb Spain's sixth biggest bank, the report said.

Crude oil slump
US crude futures settled 5 per cent, or $2.47 a barrel, lower at $45.72 a barrel, the lowest settlement for US crude since May 4. US benchmark futures have slid more than 11 per cent in 10 days of trading, said a Reuters report. Crude stock in the US grew by 3.3 million barrels to 513 million barrels, according to the US Energy Information Administration (EIA). That confounded forecasters who had predicted a drop of 3.5 million barrels, especially a day after data from the American Petroleum Institute indicated an even bigger fall.

Global markets
Asian markets were trading lower in early morning trade. The MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.27 per cent. On Wednesday, the Dow Jones Industrial Average rose 37.46 points, or 0.18 per cent, to settle at 21,173.69. The S&P500 index added 3.81 points, or 0.16 per cent, to 2,433.14. The Nasdaq Composite index gained 22.32 points, or 0.36 per cent, to 6,297.38.