Sensex, Nifty Set To Rally As Fed Sees Three Rate Cuts In 2024

RTTNews | 609 gün önce

(RTTNews) - Indian shares may see strong gains on Thursday after the U.S. Federal Reserve flagged the end of its tightening cycle and struck a dovish tone for the year ahead.

Benchmark indexes Sensex and Nifty ended little changed on Wednesday while the rupee settled at a record closing low of 83.4 against the dollar.

Foreign institutional investors (FII) bought shares worth net Rs 4710.86 crore on Wednesday, while domestic institutional investors sold shares worth net Rs 958.49 crore, according to provisional data available on the NSE.

Asian stocks followed Wall Street higher on the Fed's dovish stance. The dollar dropped to a four-month low and the benchmark Treasury bond yield fell below the 4 percent level for the first time in four months on the Fed's pivot to rate cuts.

Gold extended gains after climbing more than 1 percent in the U.S. trading session overnight.

Oil extended gains from the previous session amid Middle East tensions and data showing a bigger-than-expected weekly withdrawal from U.S. crude storage.

Concerns mounted about the security of Middle East supplies after a tanker attack in the Red Sea off Yemen's coast.

Israel said the war against Hamas will continue with or without international support.

U.S. stocks closed higher overnight while benchmark slipped to their lowest level since August as the Fed signaled an end to its tightening cycle and confirmed plans to pivot to cutting rates next year, citing slowing inflation and economic growth.

The median forecast indicate rates will be lowered to 4.6 percent by the end of 2024, suggesting the Fed plans to cut rates by 25 basis points three times next year.

During his post-meeting press conference, Fed Chair Jerome Powell acknowledged that rate cuts will be a "topic of discussion" at upcoming meetings.

The Dow spiked 1.4 percent to a record closing high, while the Nasdaq Composite and the S&P 500 also gained about 1.4 percent to reach their best closing levels in almost two years.

European stocks ended mixed on Wednesday as investors digested muted U.S. producer price inflation and Eurozone industrial production data, and looked ahead to the FOMC policy decision.

The pan European STOXX 600 finished marginally lower. The German DAX and France's CAC 40 both slipped around 0.2 percent while the U.K.'s FTSE 100 ended flat with a positive bias.

Canadian Market Remains In Negative Territory After Weak Start

The Canadian market, which opened on a weak note Thursday morning, continues to languish in negative territory well past noon, weighed down by losses in technology and industrials sectors.

RTTNews | 1s 28 dakika önce

Swiss Market Ends Modestly Higher After Mild Struggle

The Switzerland market recovered after a flat start on Thursday, and after staying positive till well past noon, suffered a setback but regained some strength to eventually end the day's session modestly higher.

RTTNews | 1s 53 dakika önce

Major European Markets Close On Positive Note

Amid expectations of a rate cut from the Federal Reserve in September, and hopes the meeting between the Presidents of the U.S. and Russia will help end the war in Ukraine, the major European markets closed on a positive note on Thursday, although the U.K. market underperformed other major markets in the region.

RTTNews | 2s 9 dakika önce

U.S. Producer Price Growth Far Exceeds Estimates In July

Producer prices in the U.S. increased by much more than expected in the month of July, the Labor Department revealed in a report released on Thursday. The Labor Department said its producer price index for final demand shot up by 0.9 percent in July after coming in unchanged in June. Economists had expected producer prices to rise by 0.2 percent.

RTTNews | 4s 37 dakika önce

U.S. Weekly Jobless Claims Unexpectedly Dip To 224,000

The Labor Department released a report on Thursday unexpectedly showing a modest decrease by first-time claims for U.S. unemployment benefits in the week ended August 9th. The report said initial jobless claims dipped to 224,000, a decrease of 3,000 from the previous week's revised level of 227,000.

RTTNews | 5s 9 dakika önce

UK GDP Rises More Than Expected

The UK economy expanded more than expected in the second quarter but the overall growth softened as US frontloading propelled growth at the start of the year. Gross domestic product expanded 0.3 percent in the second quarter largely driven by growth in the service sector, the Office for National Statistics reported Thursday. Although the rate was stronger than the expected growth of 0.1 pe

RTTNews | 5s 50 dakika önce

Bay Street Likely To Open On Mixed Note

Canadian shares are likely to open on a mixed note Thursday morning, reacting to data showing a bigger than expected increase in U.S. producer price index, and mixed batch of earnings data from Canada. Oil prices are up, while metals are exhibiting weakness.

RTTNews | 6s 21 dakika önce

S&P Sees Limited Impact From U.S. Tariffs On Indian Economy, Raises Ratings

S&P Global Ratings upgraded India's sovereign ratings on Thursday citing a buoyant economic growth, enhanced monetary policy conditions and the government's fiscal consolidation commitment, while the higher tariffs from the U.S. administration is estimated to have only limited impact on the economy. India's sovereign credit ratings were raised to 'BBB' from 'BBB-', with a 'stable' outlook.

RTTNews | 6s 25 dakika önce

EURUSD	1.16458	GBPUSD	1.35359	AUDUSD	0.64971
USDJPY	147.821	USDCAD	1.38094	USDCHF	0.8079