Market is expected to open on a gap down and likely to witness sideways move during the day - Nirmal Bang Ltd
Market Review
US:
U.S. Stocks tumbled Wednesday as investors digested news of U.S. restrictions on chip exports to China and Federal Reserve Chair Jerome Powell's latest assessment of the economy.
Asia:
Most markets in Asia-Pacific region erased opening losses. The indices fell at open, tracking an overnight sell-off on Wall Street as US Federal Reserve Chair Jerome Powell's speech implied a potential persistent inflation because of tariff
India:
Indian benchmark indices continued their upward trajectory to close higher for the third consecutive trading session on Wednesday. Market is expected to open on a gap down and likely to witness sideways move during the day
Global economy:
China will pay no attention if the U.S. continues to play the tariff numbers game, after the White House outline how China faces tariffs of up to 245% due to its retaliatory actions. In a fact sheet released on Tuesday, the White House said China’s total duties include the latest reciprocal tariff of 125%, a 20% tariff to address the fentanyl crisis, and tariffs of between 7.5% and 100% on specific goods to address unfair trade practices. Donald Trump announced additional tariffs on all countries two weeks ago, before suddenly rolling back higher reciprocal tariffs for dozens of countries while keeping punishing duties on China.
Bank of Japan Governor Kazuo Ueda said on Thursday uncertainty surrounding U.S. tariff policy has heightened sharply recently. When the BOJ raised interest rates in January, the U.S. economy was in good shape and financial markets were stable, Recently, uncertainty surrounding U.S. policy, particularly that on tariffs, has heightened sharply, he told parliament. We will scrutinise developments and their impact on Japan’s economy without any pre-conception at each policy meeting. Ueda said Japan’s economy continued to recover moderately with rising wages helping accelerate underlying inflation towards the central bank’s 2% target.
Commodities:
Oil prices extended gains on Thursday on the prospect of tighter supply after Washington imposed further sanctions to curb Iranian oil trade and as some OPEC producers pledged further output cuts to compensate for pumping above agreed quotas.
Gold extended its record rally on Thursday as investors sought refuge in safe-haven assets amid an intensifying global trade conflict between the United States and its trading partners.
Currency:
The dollar looked set to notch a fourth straight weekly loss on Thursday as tariffs drive investors from U.S. assets, though it lifted off a seven-month low against the yen as U.S.-Japan trade talks have so far steered clear of any currency discussion.
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