Market is expected to open on a gap up note and likely to witness positive move during the day - Nirmal Bang Ltd
Market Review
US:
A renewed wave of dip buying propelled stocks higher on Monday, as traders looked beyond Moody's recent downgrade of the US credit rating, which had initially caused bond yields to spike.
Asia:
Shares climbed for the first time in four days, reflecting gains in the US that brought the S&P 500 index close to entering a bull market.
India:
The benchmark equity indices closed lower on Monday for the second consecutive session amid volatility in the stock markets following Moody's downgrade of the US by a notch. Market is expected to open on a gap up note and likely to witness positive move during the day.
Global economy
China cut benchmark lending rates for the first time since October on Tuesday, while major state banks lowered borrowing costs as authorities work to ease monetary policy to help buffer the economy from the impact of the SinoU.S. trade war. The People’s Bank of China said the one-year loan prime rate (LPR), a benchmark determined by banks, had been lowered by 10 basis points to 3.0%, while the five-year LPR was reduced by the same margin to 3.5%. Brazil’s economy powered through the first quarter, defying high borrowing costs thanks to a bumper grain harvest and growth in the industrial sector, central bank data showed on Monday. The IBC-Br economic activity index, regarded as a proxy for gross domestic product (GDP), grew 1.3% in the January-to-March period from the previous quarter.The agricultural component of the index rose 6.1% in the last quarter.Even stripping out that boost, economic activity still increased 1.0% from the previous quarter, driven mainly by industrial growth of 1.6%, according to the central bank’s methodology.
Commodities:
Oil prices experienced a slight increase due to potential setbacks in U.S.-Iran nuclear talks, diminishing prospects of increased Iranian oil supply. Gold prices experienced a slight dip as the dollar strengthened and optimism grew regarding potential ceasefire negotiations between Russia and Ukraine.
Currency:
The dollar traded sideways on Tuesday after having glided lower for a week, hemmed in by the Fed's caution over the economy and as U.S. lawmakers came closer to passing a bill expected to widen the nation's fiscal deficit.
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