Market is expected to open on a gap up note and likely to witness positive move during the day - Nirmal Bang Ltd
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Market Review
US:
MSCI's global equities gauge advanced on Friday with technology leading Wall Street higher, while the yen weakened after the BoJ raised interest rates to a three-decade high, as widely expected, and left the door open to more tightening.
Asia:
Asian equities opened higher, tracking Friday’s gains in US stocks that helped intensify bets for a strong finish to the year.
India:
The Indian benchmark indices snapped a four-day losing streak and ended strongly with Nifty closing above 25,900, led by buying across the sectors and increased hopes for further rate easing by the Fed Reserve going ahead post-soft US inflation data. Market is expected to open on a gap up note and likely to witness positive move during the day.
Global economy:
China left benchmark lending rates unchanged for the seventh consecutive month in Dec matching market expectations. The one-year loan prime rate (LPR) was kept at 3.00%, while the five-year LPR was unchanged at 3.50 %. In a Reuters survey of 25 market participants conducted last week, all participants predicted no change to either of the two rates. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.
U.S. Treasury yields ticked higher as investors digested fresh consumer sentiment data and a tame inflation print. The 10- year Treasury yield rose more than 3 basis points to 4.151%, while the 2-year Treasury yield was up more than 2 basis points at 3.485%. The 30-year Treasury bond yield increased more than 2 basis points to 4.826%.
Consumer prices rose less than expected in Nov, giving investors hope that inflationary pressures may be cooling enough for U.S. monetary policy to be eased more than Wall Street anticipates. The CPI rose at a 2.7% annualized rate last month. Economists polled by Dow Jones expected the CPI to have risen 3.1%.
Commodities:
Oil prices climbed in early trade on Monday after the U.S. intercepted a Venezuelan oil tanker over the weekend.
Spot gold surged to a record high of $4,383.73 per ounce on Monday, lifted by expectations of further U.S. Federal Reserve rate cuts after last week's quarter-point reduction, sustained safe-haven demand, and a softer dollar.
Currency:
The yen languished near a record low to the euro on Monday, after Bank of Japan Governor Kazuo Ueda stuck to his usual cautious rhetoric following an interest rate hike on Friday.
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