IGI Logo

Market Review

US:

U.S. stocks closed sharply lower on Thursday, wiping away some of the previous day's rally as investors digested President Donald Trump's decision to suspend some tariffs while escalating a trade war with China.

Asia:

Asian markets bore the brunt of the initial reaction, opening sharply lower on Friday. Japan's Nikkei 225 was down 5.38% at 32,746.49, while South Korea's KOSPI declined 1.97% to 2,397.

India:

India's benchmark equity indices snapped its one day of advance to end in the red on Wednesday after the RBI's 25 basis points rate cut failed to enthuse investors reeling under Trump tariffs. Market is expected to open on a gap up and likely to witness sideways move during the day.

Global economy:

Donald Trump’s pause on some announced import taxes may have eased the stress building in financial markets for now, but leaves in place the same set of circumstances that had reset the U.S. economic outlook with rising recession risks and potentially rising inflation. Major tariffs on China, Mexico and Canada remain in place, accounting for the bulk of U.S. imports, and the public, investors and the U.S. Federal Reserve now have three more months of uncertainty around where a disruptive debate will settle. With the stage set for a downturn in confidence that Fed officials already worry is sidelining spending and investment.

China’s Commerce Minister Wang Wentao had discussions with his Saudi Arabian and South African counterparts to exchange views on responding to the U.S. reciprocal tariffs, the Chinese ministry said on Friday. The conversations took place over separate video calls on Thursday in which China discussed strengthening bilateral economic and trade cooperation with Saudi Arabia and South Africa. Wang also spoke to Saudi Arabia’s Commerce Minister Majid bin Abdullah al-Qasabi about enhancing cooperation with countries within the Gulf Cooperation Council

Commodities:

Oil prices fell on Friday and were set to drop for a second week on concerns prolonged trade war between the United States and China, the world's largest economies, will crush crude consumption as their dispute curtails economic growth

Gold prices raced to an all-time high on Friday, supported by recession concerns as escalating tariff tensions between the United States and China fuelled investor demand for safe-haven assets like bullion.

Currency:

The dollar slumped on Friday as waning confidence in the U.S. economy prompted investors to ditch U.S. assets to the benefit of safe havens like the Swiss franc, yen and euro, as well as gold.

Please refer disclaimer at https://www.nirmalbang.com/disclaimer.aspx
SEBI Registration number is INH00000176