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US

The Dow Jones Industrial Average traded slightly lower in today's market while the Nasdaq also reversed lower. The S&P 500 briefly traded positive after the Fed kept its aggressive monetary policy stance intact.

Asia

Stocks in Asia-Pacific mostly rose in Thursday morning trade, as investors react to the U.S. Federal Reserve’s decision to keep its easy money policy in place.

India:

Gains in banking and auto counters following superior Q4 results and vaccine optimism buoyed domestic global markets for the third day in a row on Wednesday ahead of the US Fed policy outcome later today. The BSE flagship index Sensex ignored a weak set of global cues and risks arising from Covid-19's second wave to surge 790 points to 49,734. ICICI Bank, HDFC twins, Bajaj Finance, Kotak Bank and SBI were the key index contributors. Market is expected to open gap up and likely to witness positive move during the day.

Global Economy:

The U.S. trade deficit in goods jumped to a record high in March, suggesting trade was a drag on economic growth in the first quarter, but that was likely offset by robust domestic demand amid massive government aid. Economic activity in the United States has rebounded more quickly compared to its global rivals. The pent-up demand is drawing in imports, eclipsing a recovery in exports and keeping the overall trade deficit elevated. The goods trade deficit surged 4.0% to $90.6 billion last month, the highest in the history of the series. Exports of goods accelerated 8.7% to $142.0 billion. The jump in exports was offset by a 6.8% advance in imports to $232.6 billion. Demand during the pandemic shifted to goods from services, with Americans cooped up at home. Economists expect the goods trade deficit will remain large at least until year-end, with demand reverting back to services like air travel and dining out following the expansion of the COVID-19 vaccination program to all adult Americans.

Commodities:

Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts on recovering demand this summer offset concerns of rising COVID-19 cases in India, Japan and Brazil. Gold prices rose on Thursday bolstered by the U.S. Federal Reserve's pledge to maintain easy monetary policy to aid economic recovery, while a weaker dollar provided further support

Currency:

The dollar was on the defensive near nine-week lows on Thursday as a decidedly dovish outlook from the U.S. Federal Reserve gave a green light for the global reflation trade.

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