Indian stocks are expected to begin trades in a neutral tone on Tuesday, as bond yields maintain steady levels, the highest since 2024, in anticipation of US inflation data, the FOMC meeting minutes release, and the European Central Bank policy assembly.
The possibility of a Federal Reserve rate cut this year has come into question after Lorie Logan, the President of the Federal Reserve Bank of Dallas, cautioned that contemplating a lower interest rate might be premature. Associated fears about a likely rise in inflation were reiterated by Federal Reserve Governor Michelle Bowman. Meanwhile, the President of the Federal Reserve Bank of Chicago, Austan Goolsbee, commented on the necessity for the US central bank to ascertain the extent it could retain its restrictive policy without adversely impacting the economy. Furthermore, Neel Kashkari, President of Federal Reserve Bank of Minneapolis, stated the Federal Reserve could not afford to pull back in the face of inflation as oil prices continue to inch upwards.
Due to the Gudi Padwa festival, predominantly celebrated by the population of Maharashtra, trading volumes today may be lower than usual. On Monday, Indian benchmark indices Sensex and Nifty both observed approximately 0.7% growth each, while the rupee concluded the trade in a steady state at 83.31 against the dollar.
Asian markets exhibited mixed results this morning, with the dollar demonstrating uncertainty, gold prices slightly below its peak levels, and oil nearing a five-month high, amid brewing tensions in the Middle East and ongoing worries about supply.
Rafah is potentially on the verge of ground offensive by Israel as Hamas rejected its latest ceasefire proposition made during Cairo talks, the final warning among several given by Benjamin Netanyahu.
US stocks swung between gains and losses before eventually, landing on a split decision at close on Monday. This happened as 10-year yields surged to a five-month high, ahead of commentary from Federal Reserve officials and additional data on US inflation.
While Dow Jones and S&P 500 noted minor losses, the tech-centric NASDAQ Composite concluded trades virtually unchanged, albeit with a slight upward tendency.
Meanwhile, European markets concluded on a higher note on Monday, buoyed by positive data on investor confidence in the Eurozone and German industrial production. The pan-European STOXX 600 recorded a half-percent growth. German DAX saw a rise of 0.8%, France's CAC 40 increased by 0.7% and the UK's FTSE 100 surged approximately 0.4%.
