Market is expected to open on a gap down note and likely to witness range bound move during the day - Nirmal Bang Ltd
Market Review
US:
Wall Street slumped on Friday after U.S. President Donald Trump escalated his trade conflict with China after Beijing tightened its rare earth restrictions.
Asia:
Asian stocks got off to a rocky start on Monday after fresh broadsides in the U.S.-China trade war spooked markets with already stretched valuations, though there were signs risk sentiment had steadied with Wall Street futures bouncing.
India:
Indian benchmark indices advanced Friday, lifted by gains in financial heavyweights on renewed foreign portfolio investor inflows over the past three sessions. Market is expected to open on a gap down note and likely to witness range bound move during the day.
Global economy:
Italian industrial output slumped in August by 2.4% from the month before, a renewed sign of weakness for the country’s long-struggling manufacturing sector. August’s decline extended to all the main industrial sectors, driving a 0.6% fall in the June-August period compared to the previous three months.
U.S. consumer sentiment was steady in October, with households appearing to shrug off a partial shutdown of the government, though worries about the labor market and inflation lingered. The shutdown, now in its second week, has disrupted public services, delayed flights and sent hundreds of thousands of federal workers home, with spillover effects to contractors, thousands of whom have been furloughed.
Brazil’s producer price index decreased by 0.20% in August. The August decline was less steep than the 0.31% drop recorded in July, indicating a slight moderation in the pace of producer price decreases.
Commodities:
Oil prices are recovering after a recent dip. Investors are hopeful that potential talks between the U.S. and Chinese presidents could ease trade tensions. This could boost demand for oil. Markets are watching to see if aggressive trade policies are implemented or if a pause in tariff escalation continues.
Gold prices have surged to an all-time high. This rise is fueled by renewed trade tensions between the US and China. Investors are seeking safe havens amid global economic and political uncertainties. Expectations of further interest rate cuts by the US Federal Reserve are also supporting gold's upward trend.
Currency:
The U.S. dollar recovered from a selloff in early trade on Monday as investors hoped Washington may temper its latest escalation of the trade war with Beijing, while political developments in France and Japan undermined the euro and the yen.
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