Wall Street plummets in trade; SGX Nifty indicating a muted start

Asian markets open mixed with SGX Nifty Indicating a muted start

Vinnii Motiwala

Updated Jun 17, 2022, 09:26 IST

Wall Street performance indicate muted start for Asian markets.

Photo : iStock

KEY HIGHLIGHTS

Wall Street plunges in trade on recessions fears
Asian markets opened weak
SGX Nifty indicates muted start

New Delhi: The US markets whipsawed into the negative on Thursday from positive on Wednesday. The fall came after the Federal Reserve's largest rate increase since 1994 to fight the high inflation and the added worry of a recession. The selloff was severe as the Fed's aggressive move raised fears of a spate of monetary tightening from global central banks that could slow growth around the world.

The S&P 500 closed at its lowest since December 2020, while the tech-heavy Nasdaq 100 sank 4% and S&P 500 down 3.25%. The Nasdaq was at the lowest level since Nov 2020. The benchmark S&P 500 suffered its sixth decline in seven sessions.

All the 11 S&P sectors closed lower in trade with Growth stocks tumbling while defensive names manage to resist selling pressure. The defensive consumer staples were outperforming the broader market as names like Walmart, General Mills and Procter & Gamble were among the few advancers.

European stocks indexes fell on Thursday after the Bank of England raised interest rates by an expected quarter percentage point, while a profit warning by online fashion retailer ASOS hit the retail sector. The FTSE 100 index and the domestically focussed mid-cap FTSE 250 index both ended 3.1% lower. The central bank raised rates to 1.25%, the highest since January 2009.

The Asian Markets have opened mixed with Nikkei 225 down more than 2%, Kospi down ~1% while Hang Seng Index opened in the green gain 1%. The SGX Nifty indicates a flat for the Indian indices.

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