Market is expected to open on a negative note and likely to witness range bound move during the day - Nirmal Bang Ltd
Market Review
US:
The US equity benchmarks declined on Thursday as Wall Street saw profit booking after two record-breaking sessions on the back of the U.S. government shutdown.
Asia:
The Asian markets opened lower in Friday’s early trade following the drop on Wall Street overnight as technology stocks continued to come under pressure and Fed rate-cut doubts swirled.
India:
Indian Markets closed almost flat on Thursday. Broader indices witnessed mild consolidation as investors adopted a cautious approach, favouring selective buying in defensives while booking profits in recent outperformers. Market is expected to open on a negative note and likely to witness range bound move during the day.
Global economy:
The growth of the UK economy has slowed more than expected in the third quarter between July and September. In the month of Sep the economy actually shrank a little, by 0.1%, with the ONS pointing to the impact of the 28% fall in the manufacturing of cars, following the cyber incident that paused production at Jaguar Land Rover.
China’s economy is showing persistent signs of weakness even as top level policymakers roll out ambitious stimulus packages. Despite official declarations of a sweeping push to stimulate consumption, the country is now facing its longest stretch of slowing consumer demand since the post Covid rebound, highlighting the depth of structural headwinds. Retail growth is anticipated at just 2.8?% YoY, marking a fifth consecutive monthly deceleration, the longest such stretch since 2021.
Commodities:
Oil prices dipped for a second day. U.S. crude stockpiles increased, adding to worries about ample global supply. OPEC also projected a supply surplus for 2026. Analysts expect further inventory builds. This situation is putting downward pressure on oil prices. Market sentiment indicates excess supply.
Gold prices edged up on Friday and were on track for a weekly gain, supported by a weaker dollar, although gains were kept in check as hawkish comments from the U.S. Federal Reserve officials doused hopes for an interest rate cut in December.
Currency:
The dollar struggled to claw back steep losses on Friday and was on track for a weekly fall, as investors awaited a backlog of U.S. data following the government's reopening, which they expect will likely point to a weakening economy.
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