Market is expected to to open on a positive note and likely to witness positive move during the day - Nirmal Bang Ltd
Market Review
US:
U.S. stock futures were little changed on Tuesday night, following a volatile session for stocks, as traders digested the latest developments in the U.S.-China trade war.
Asia:
Asian stocks rebounded after three days of losses, as optimism over a potential Federal Reserve rate cut lifted sentiment and outweighed renewed US-China trade tensions.
India:
Indian benchmark indices reversed early gains to close lower for a second consecutive session on Tuesday, with a retreat in financials weighing on sentiment. Market is expected to to open on a positive note and likely to witness positive move during the day.
Global economy:
Chinese consumer price index inflation shrank as private consumption showed few signs of recovery amid weak economic conditions, with producer inflation falling for a third straight year. CPI inflation shrank 0.3% year-on-year in September. The print was weaker than expectations for a drop of 0.2%, but improved slightly from the 0.4% seen in the prior month.
U.S. small-business sentiment declined in September amid expectations of unfavorable operating conditions in the next six months, and many owners reported raising prices or planning to, suggesting that inflation was poised to increase further. The Small Business Optimism Index dropped 2.0 points to 98.8 last month. It was the first decline in three months.
British grocery inflation rose to 5.2% in the four weeks, adding to pressure on consumers already facing higher energy bills. Higher employer taxes and regulatory costs as well as increased staff wages are adding to inflationary pressure from higher prices for commodities.
Commodities:
Oil prices are dropping. The International Energy Agency warns of a potential surplus of 4 million barrels per day in 2026. This is due to increased output from producers and sluggish demand. Trade tensions between the United States and China are also a concern.
Gold prices surged, nearing record levels. Investors sought safety in bullion as U.S.-China trade tensions escalated, increasing global uncertainty. Expectations of further U.S. interest rate cuts also fueled the rally. Silver prices also climbed, tracking gold's upward movement.
Currency:
The US dollar faced pressure, Federal Reserve Chair Jerome Powell's comments fueled expectations of an interest rate cut this month. Meanwhile, trade disputes between Washington and Beijing escalateds, impacting currency markets.
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