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:
U.S. stocks finished higher on Friday, rebounding from early declines after Federal Reserve Chair Jerome Powell said the economy was "in a good place," but uncertainty about U.S. trade policy led to Wall Street's biggest weekly decline in months.
Asia:
Most Asian markets fell in early trade, with the MSCI Asia ex Japan down 0.4%, as China's consumer price index fell at the sharpest pace in 13 months in February, adding to growth worries from a fading U.S. economy and an escalating global trade war.
India:
Indian stock market benchmark Nifty 50 ended in the green for the third consecutive session on Friday, March 7. However, the index clocked a nominal gain of 8 points as concerns over foreign capital outflow, major trade war, and economic growth slowdown continue weighing on sentiment. Nevertheless, the index closed with a gain of nearly 2 per cent, snapping the losing run of the last three consecutive weeks. Market is expected to open on a negative note and likely to witness range bound move during the day.
Global economy:
Consumer Credit in the United States surged to $18.08 bn. This figure, while significant, falls short of the projected forecast of $15.60 bn. Compared to the forecasted figure, the actual Consumer Credit is higher by $2.48 bn, indicating a stronger than expected consumer spending and confidence.
Hungary and the United States will agree on an economic cooperation package that will help the Hungarian economy and could offset the effect of possible U.S. tariffs. Hungary PM Viktor Orban, a long-time supporter of Trump, said that the economic package would expand on the already existing political alliance between Hungary and US.
Chinese consumer and producer inflation contracted more than expected in February, underscoring the need for more stimulus measures from Beijing amid persistent disinflation in the country. Chinese consumer price index inflation shrank 0.7% yoy, more than expectations for a drop of 0.4% and reversing course from a 0.5% increase in January.
Commodities:
Oil prices fell on Monday as concern about the impact of U.S. import tariffs on global economic growth and fuel demand, as well as rising output from OPEC+ producers, cooled investor appetite for riskier assets.
Gold prices edged higher on Monday, helped by a weaker dollar and safe-haven flows triggered by fears of a global trade war, while investors awaited further clues to gauge the Federal Reserve's interest rate stance.
Currency:
The dollar began Monday on a weak note after significant losses last week due to a potentially weakening U.S. labour market, while concerns over a global trade war led investors to safe havens, lifting the yen and the Swiss franc.
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