Market is expected to open on a flattish note and likely to witness range bound move during the day - Nirmal Bang Ltd
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Market Review
US:
US stocks surged towards record highs amid expectations of diminished market volatility following Donald Trump's successful recovery from an assassination attempt, which could strengthen his presidential prospects.
Asia:
Markets in Asia-Pacific region were trading on a mixed note Tuesday while investors parse comments from the Federal Reserve Chair Jerome Powell. Further, possibility of a return of Donald Trump as the US president after assassination attempt supported the benchmarks in emerging markets.
India:
India's benchmark stock indices ended at a fresh closing high on Monday, tracking sharp gains in the State Bank of India, Oil and Natural Gas Corp., and NTPC Ltd. Market is expected to open on a flattish note and likely to witness range bound move during the day.
Global economy:
The steady medium-term lending facility (MLF) rate was in line with market expectations, as narrowing interest margins at lenders and a weak Chinese currency continue to limit Beijing's ability to use monetary easing to shore up the sputtering economy. Meanwhile, the central bank has been working to avoid money idling in the financial system. The People's Bank of China (PBOC) said it was keeping the rate on 100 billion yuan ($13.8 billion) in one-year MLF loans to some financial institutions unchanged at 2.50% from the previous operation. With 103 billion yuan in MLF loans set to expire this month, the operation resulted in a net 3 billion yuan fund withdrawal from the banking system. The central bank also injected 129 billion yuan through seven-day reverse repos while keeping borrowing costs unchanged at 1.80% China’s National Bureau of Statistics on Monday said the country’s second-quarter GDP rose by 4.7% year on year, missing expectations of a 5.1% growthJune retail sales also missed estimates, rising 2% compared with the 3.3% growth forecast. Industrial production year-on-year growth in June, however, beat expectations at 5.3%, compared with Reuters’ estimate of 5%. High-tech manufacturing saw an 8.8% increase in value added in June.
Commodities:
Oil prices edged lower on Tuesday on worries about a slowing Chinese economy crimping demand, though a growing consensus that the U.S. Federal Reserve will begin cutting its key interest rate as soon as September limited declines. Gold prices remain stable as market watches for Federal Reserve interest rate decisions. U.S. economic data release expected to provide more insights. Traders predict rate cuts in the coming months.
Currency:
The dollar hung around five-week lows on Tuesday as comments from Federal Reserve Chair Jerome Powell bolstered the case for a rate cut in September
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