Tag: US bond yields

Analysts, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


The RBI interest rate decision, macroeconomic data and global trends would dictate the equity market, which is showing some signs of correction after a stellar run, this week, analysts said. Besides, investors will also track the movement of the dollar index and US bond yields this week, they said.

“The market will have an eye on the global data to get further direction. On the domestic front, we don’t have many negative cues but it will be important to listen to the commentary of RBI governor in the upcoming policy scheduled on 8th October where what he says about inflation will be important,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

On October 8, TCS will announce its Q2 earnings, Meena said.

The movement of the dollar index, US bond yields will also play an important role in the direction of global markets while crude oil prices will have a major impact on Indian markets, he added.

“This week, the RBI is scheduled to announce its monetary policy. India’s service PMI is also due to be released this week,” Vinod Nair, Head of Research at Geojit Financial Services said.

During the last week, the 30-share BSE benchmark plunged 1,282.89 points, or 2.13 per cent. Market benchmarks faced losses for the fourth straight session on Friday.

Markets would also track movement of the rupee, Brent crude and FPI investments.

“The September correction in the US markets does highlight some developing risks – a surge in global inflation, oil and commodity prices, rising interest rates, Fed taper and the recent developments on the China front – which could create intermittent disruption in investor sentiment.

“Indian markets are currently richly valued and therefore not immune from some of these headwinds. However, given the strong earnings outlook trajectory, any meaningful correction in the equity markets can serve as an entry opportunity for long-term investors with a sufficiently long investment horizon,” said Unmesh Kulkarni – Managing Director Senior Advisor, Julius Baer India.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

Dollar heads for its longest streak of weekly losses so far this year, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


TOKYO: The dollar headed for its worst back-to-back weekly drop this year amid a continued retreat in Treasury yields from more-than-one-year highs as investors increasingly bought into the Federal Reserve’s insistence of continued monetary support.

The benchmark 10-year Treasury yield dipped to a one-month low of 1.528% overnight, from as high as 1.776% at the end of last month, even in the face of Thursday’s stronger-than-expected retail sales and employment data.

San Francisco Fed President Mary Daly said the same day that the U.S. economy is still far from making “substantial progress” toward the central bank’s goals of 2% inflation and full employment, the bar the Fed has set for beginning to consider reducing its support for the economy.

The dollar index, which tracks the greenback against six major peers, dipped to an almost-one-month low of 91.487 overnight before recovering somewhat to 91.678 early in the Asian session.

It’s set for a 0.6% decline for the week, extending the 0.9% slide from the previous week.

The gauge, also known as the DXY, surged with Treasury yields to an almost-five-month high at 93.439 on the final day of March, on bets that massive fiscal spending coupled with continued monetary easing will spur faster U.S. economic growth and higher inflation.

But bond and foreign-exchange markets now seem willing to give the Fed the benefit of the doubt that inflation pressure will be transitory and monetary stimulus will remain in place for years to come.

The dollar is “still struggling to find its feet in April, even though the U.S. macro outperformance narrative could not be more propitious,” Westpac strategists wrote in a research note.

“The DXY is trading like its topping out now, sooner than (we) expected.”

Retail sales increased 9.8% last month, beating economists’ expectations for a 5.9% increase, while first-time claims for unemployment benefits tumbled last week to the lowest level in more than a year, separate reports showed Thursday.

The dollar traded at 108.68 yen, heading for a 0.9% loss for the week, about the same as the previous week.

The euro changed hands at $1.1964, set for a 0.5% weekly advance, adding to the previous period’s 1.3% surge.

In cryptocurrencies, Bitcoin stood around $63,478, near the record high of $64,895 reached on Wednesday, when cryptocurrency platform Coinbase COIN.O made its debut in Nasdaq in a direct listing.

The Russian rouble tumbled on Thursday, at one point losing 2% to the dollar in volatile trade and hitting a more than five-month low versus the euro as the White House announced new sanctions targeting Russia’s sovereign debt.

U.S. President Joe Biden on Thursday authorized the move to punish Moscow for interfering in the 2020 U.S. election, allegations Russia denies.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,