FED INTEREST RATE HIKE?
Inflation rate in US beat market expectation and made strong pitch for increase Interest rate. However, the growth concerns in Euro zone remains gloomy,while the BRICS are facing high inflation pressure.
Unexpected decline in crude inventories is only temporary, with more gains to follow as production remains strong. Oil extended losses from the lowest.
The USDINR increased 0.5206 or 0.77% to 68.39 on Thursday February 11 from 67.86 in the previous trading session.
Investors are concerned over central banks' policies.Signals by central banks from Europe to Japan that additional stimulus is at the ready are failing to ease investor concern that global growth will keep slowing.
FED added fuel to this year's bond rally by suggesting on Wednesday the central bank may delay raising interest rates.
The US trade gap widened to USD 43.4 billion in December of 2015 from a downwardly revised USD 42.2 billion in the previous month and roughly in line with expectations.
The downtrend in US GDP after Fed rate hike is likely to put pressure on the decision on QE reversal.
Chinese Yuan's ripple effect consumes most market. China as the largest exporter, any devaluation in Yuan have its lasting impact on Global trade.
Govt debt increased violently since last many years. It's a wary sign as developed world almost raised their debt to 100% to GDP. Eventually Fading confidence on central bank's policy on economic revival creating chaos in Market.
Chinese Yuan as Reserve currency provide impetus to Chine to rule in Trade and now can flex its muscle to increase its share in total Trade Basket.
Investor to stay in equity? the question being debated widely and apart from pessimism,the affirmative answer also coming with lot of trepidation.
We had posted negative view on Indian Market several times in December. However,never expected this momentum of fall. Almost 8%-10% correction in few trading session.
Finally much anticipated FED rate hike happened after almost a decade. MKT gives it thumbs up.However,there are larger concern for Fragile Five India,Turkey,south Africa,Indonesia and Brazil due to their large dependency on foreign investment.