Market is expected to open on a flattish note and likely to witness range bound move during the day - Nirmal Bang Ltd
Market Review
US:
US stocks slipped on Thursday, failing to build on a Wednesday rally fueled by reassuring signals from Federal Reserve Chair Jerome Powell after the central bank held interest rates steady.
Asia:
Asian equities traded cautiously early Friday, with markets uncertain about US President Donald Trump's next move in the trade war. Japan's stock market started the day on a positive note, but South Korea's shares took a hit, and Hong Kong's equity index futures were also down.
India:
The Indian equities ended at their highest level in over a month on Thursday after the US Federal Reserve signalled more interest rate cuts later this year, seeing brief increase in inflation due to Trump's tariff policies. Market is expected to open on a flattish note and likely to witness range bound move during the day.
Global Economy:
Japan’s core inflation hit 3.0% in February and an index stripping away the effect of fuel rose at the fastest pace in nearly a year, a sign of broadening price pressure that reinforces market expectations of further interest rate hikes. The data came in the wake of Bank of Japan (BOJ) Governor Kazuo Ueda’s warning, made after its decision to keep interest rates steady on Wednesday that rising food costs and strongerthan-expected wage growth could push up underlying inflation.
The Energy Information Administration (EIA) has released its Natural Gas Storage report, revealing an unexpected increase in the number of cubic feet of natural gas held in underground storage over the past week. The actual data shows a rise in storage to 9 billion cubic feet (B), a figure significantly higher than the forecasted 3B. This increase implies a weaker demand for natural gas, which is bearish for natural gas prices. When compared to the previous week’s data, the change is even more striking. Last week’s report showed a decrease of 62B, meaning this week’s increase represents a significant shift in the natural gas market.
Commodities:
Oil prices rose to a near three-week high in Asian trade on Friday, as fresh U.S. sanctions against Iran and plans to cut production by the OPEC+ pointed to tighter supplies in the coming months.
Gold held steady on Friday to trade below its record high hit in the previous session, supported by safe-haven demand arising from geopolitical and economic uncertainty, while the Federal Reserve's hint at rate cuts this year also fostered appeal.
Currency:
The U.S. dollar was on the front foot against major peers on Friday after its best single-day performance for three weeks with the Federal Reserve indicating no rush to cut interest rates.
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