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Showing posts with the label monetary policy

FPIs pump Rs 18,620 cr in equities in May on global tailwinds, improving domestic fundamentals

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[hfe_template id='11223'] [ad_1] Foreign investors continue to show confidence in the country's equity market, infusing Rs 18,620 crore so far this month, driven by a combination of global tailwinds and improving domestic fundamentals. This positive momentum follows a net investment of Rs 4,223 crore in April, marking the first inflow in three months, data with the depositories showed. Prior to this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January. FPIs are likely to continue their buying interest in India, and therefore, large caps will be resilient, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said. According to the data from the depositories, foreign portfolio investors made a net investment of Rs 18,620 crore in equities this month (till May 16). The total outflow stood at Rs 93,731 crore in 2025 so far. India's equity markets witnessed a s...

European shares hold ground as investors assess earnings; focus on Fed, tariff updates

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[hfe_template id='11223'] [ad_1] European shares were little changed on Tuesday as investors assessed a spate of corporate earnings and monitored potential tariff moves, while awaiting the U.S. Federal Reserve's monetary policy decision later this week. The pan-European STOXX 600 index was flat at 537.35 points as of 0711 GMT. Other regional indexes were mixed. Investors' attention is fixed on whether the Sino-U.S. trade tensions will ease after China last week said it was evaluating an offer from Washington to hold talks over tariffs. However, the lack of concrete details on any deals between the U.S. and its partners has kept investors on edge, especially as Trump announced a new slate of tariffs. Trump, on Sunday, announced a 100% tariff on movies produced outside the U.S. and a day later said he intends to announce pharmaceutical tariffs over the next two weeks. Live Events In that light, the U.S. Fed's policy announcement on Wednesday garners increas...

S&P 500 snaps 9-session win streak after latest Trump tariff

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[hfe_template id='11223'] [ad_1] The S&P 500 fell to snap its longest streak of gains in 20 years on Monday as investors assessed U.S. President Donald Trump's latest tariff announcement ahead of the Federal Reserve's monetary policy decision later this week. On Sunday, Trump announced a 100% tariff on movies produced outside the U.S. but provided no details on how such levies would be implemented. Stocks have been volatile since Trump announced his first round of tariffs on April 2, with the S&P 500 initially dropping nearly 15%, only to stabilize and climb for the last nine straight sessions, its longest streak since 2004. On Monday, Treasury Secretary Scott Bessent said Trump's tariff, tax-cut and deregulation agenda would work together to drive long-term investment to the U.S., adding markets could overcome any short-term turbulence. "Nine up days in the S&P 500 is hard to maintain," said Art Hogan, chief market strategist at B Ri...

BOJ is holding cards close to its chest on December rate hike

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[hfe_template id='11223'] [ad_1] The Bank of Japan is staying guarded on the timing of the next rate hike with December hardly a done deal given soft consumption, its governor's cautious decision-making style and anxiety over U.S. economic policy in a second Trump presidency. BOJ Governor Kazuo Ueda signalled that December will be a live meeting in an interview with the Nikkei newspaper last week, when he said another rate hike was approaching. But he also warned of U.S. economic uncertainties and gave no clear sign the BOJ would indeed hike this month, causing market expectations of a move to fluctuate between December and January. Having steered Japan through a decade of ultra-easy monetary policy, the BOJ is wary of moving too fast in removing accommodative conditions, especially after a July rate hike caught markets by surprise and triggered a sharp bout of volatility in currencies, bonds and stocks. Heightened geopolitical tensions and uncertainty over U.S. Pr...

Japan's Nikkei ends higher in choppy trade

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[hfe_template id='11223'] [ad_1] Japan's Nikkei share average eked out gains to rise for a third straight day on Wednesday, as a softer yen and buying of retail-related shares helped narrow morning losses on profit-taking. The Nikkei rebounded after declining in early trade to close 0.1% higher at 39,276.39. The broader Topix was down 0.5% at 2,740.6. Retail-related shares outperformed in afternoon trade to boost the Nikkei. Uniqlo parent firm Fast Retailing climbed 2.4%. The company on Monday said that Uniqlo's domestic same-store sales in November increased 12.2% compared with last November. Ryohin Keikaku jumped 7.1% after the Muji retail stores operator reported a rise in domestic and online store sales last month compared to a year ago. Home interior goods maker Nitori Holdings advanced 3.6%. Gaming firms Konami Group and Nintendo jumped 2.2% and 2.7%, respectively. Entertainment conglomerate Sony Group, up 3.3%, was among exporters to receive a boost as ...

Fed cut positive for Asian stocks and risk currencies, analysts say

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[hfe_template id='11223'] [ad_1] The Federal Reserve’s decision to cut its benchmark interest rate by 50 basis points is likely to be a positive for Asian stocks as it gives the region’s central banks more room to loosen policy, analysts say. The rate cut will ease the pressure of tight monetary policy and assuage concern about weakening local currencies, said Gary Dugan, chief executive officer at Dalma Capital. The outcome is good for risk assets and high-yield currencies but FX moves may be muted in Asia as the Chinese yuan serves as an anchor, said Brad Bechtel, global head of foreign exchange at Jefferies. Here is a selection of comments from analysts: Straits Investment Management (Manish Bhargava, chief executive officer) Lower US interest rates could boost risk appetite for Asian stocks, driving capital inflows into emerging markets as investors seek higher returns. The initial phase of the Fed’s normalization cycle has been more assertive than expected, as the c...

Central banks should have independence to deliver on price stability: John C Williams

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[hfe_template id='11223'] [ad_1] Central banks ought to own up for delivering on price stability and must be given the independence to act for achieving it, a top official from the Federal Reserve Bank of New York said on Friday. In a talk at the Reserve Bank of India (RBI) headquarters, the Federal Reserve Bank of New York President and Chief Executive John C Williams -- who is also a member of the rate-setting panel of the US' Federal Reserve -- said uncertainty will continue to be the defining characteristic of monetary policy for the foreseeable future. "Central banks must own the responsibility to deliver price stability and have independence to act to achieve it," he said, while delivering the fourth Suresh Tendulkar Memorial Lecture. History has taught us that central banks can be more successful at delivering sustainably low inflation rates when they are accountable and independent, he added. He said in the 1970s, many central bankers believed mone...

US inflation cools in May, boosting hopes of Fed rate cut

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[hfe_template id='11223'] [ad_1] U.S. monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months, drawing the Federal Reserve closer to start cutting interest rates later this year. The report from the Commerce Department on Friday also showed consumer spending rose marginally last month. Underlying prices advanced at the slowest pace in six months, raising optimism that the U.S. central bank could engineer a much-desired "soft landing" for the economy in which inflation cools without triggering a recession and a sharp rise in unemployment. Traders raised their bets for a Fed rate cut in September. "This was a very Fed-friendly report that should keep the September rate cut in play, while at the same time increasing investor confidence that moderate economic growth can be maintained even as rates stay higher for longer," said Scott Anderson, chief U.S. economist at ...

Has the global economic environment turned favourable for equities?

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[hfe_template id='11223'] [ad_1] The global economy has been plagued by multiple crises in the last four years. The Covid-19 pandemic, the Russian attack on Ukraine, the synchronized monetary tightening by the central banks of the world and the Israel-Gaza conflict — all happening within a short span of four years has turned out to be a time of severe stress for the global economy. But the global economy has been surprisingly resilient. It has smartly rebounded from the massive contraction of 2020 and inflation has been largely tamed. Even though the wars in Ukraine and Gaza continue, that is not impacting global economic growth and fears of a food and energy crisis have almost disappeared. Global growth stabilises The near consensus among economists was that the US would tip into recession sometime in 2023, pulling global growth down. It was feared that the Euro Zone also may tip into recession.Recession in the US and Euro Zone was expected to impact global growth. But ...