Nifty’s Opening Cues Post First Republic Bank Takeover Ahead of Fed Meet

Published 02-05-2023, 08:51 am
Updated 02-05-2023, 08:52 am

By Malvika Gurung

Investing.com -- The Nifty 50 Futures listed on the Singapore-based Exchange SGX, an early indicator for Nifty50, traded 0.16% or 29.5 points lower at 8:35 am on Tuesday, indicating a flat-to-lower opening on Dalal Street.

Further, the Dow Jones Futures dipped 0.03% and Nasdaq 100 Futures lowered 0.07%.

The holiday-curtailed week is set to house crucial economic events including the US Fed as well as ECB policy meets, along with the release of PMI data for India, the US and China.

Read Also: Fed Meet, ECB Meet Among Prominent Events in Busy Holiday-Truncated Week

Major US indices dipped on Monday, as the Street reacted to the takeover of the failed US banking giant First Republic Bank (NYSE:FRC), followed by its sale to JPMorgan Chase (NYSE:JPM) after its stock plummeted in response to the bank losing over $100 billion in deposits during the first quarter.

This makes First Republic Bank the second biggest bank in the US in terms of assets to collapse.

Nasdaq Composite slipped 0.11%, Dow Jones dropped 0.14% and S&P 500 dipped 0.039%.

Asian shares traded mixed on Tuesday, tracking weak cues from the overnight session on Wall Street following the collapse of three midsized US banks, rattling investor sentiments and raising concerns.

At 8:38 am, South Korea’s KOSPI rose 0.6%, Japan’s Nikkei 225 dipped 0.06%, Hong Kong’s Hang Seng index dropped 0.08% and Australia’s ASX 200 contracted 0.13%. China’s market remained closed on account of Labour Day.

Oil prices climbed slightly on Tuesday, as Brent crude rose 0.21% to $79.48/barrel and WTI Futures traded at $75.83 a barrel. Natural Gas Futures declined 0.8%.

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