Indian shares are seen opening sharply lower on Wednesday as traders ratcheted down their expectations for a Federal Reserve’s interest-rate cut before July.
The dollar climbed against major currencies in international markets and Treasury yields soared as the latest U.S. CPI data pushed back on the hopes of a rate cut from the Federal Reserve any time soon.
Adani Group stocks could be in focus today after Moody’s upgraded the ratings of four Group firms.
Benchmark indexes Sensex and Nifty jumped 0.7 percent and 0.6 percent, respectively on Tuesday after the release of positive retail inflation and industrial output data. The rupee settled flat at 83 against the dollar.
Asian markets traded sharply lower, and gold fell below $2,000 per ounce while oil edged lower from the highest close in two weeks after industry data showed a substantial build in U.S. crude stockpiles.
U.S. stocks tumbled overnight while Treasury yields spiked as hotter-than-expected inflation data for January damped hopes of early and deeper Fed rate cuts this year.
Data showed the annual rate of consumer price growth slowed to 3.1 percent in January from 3.4 percent in December. Economists had expected the pace of growth to slow to 2.9 percent.
The annual rate of core consumer price in January came in unchanged from the previous month at 3.9 percent versus expectations for a decline to 3.7 percent.
The Dow and the S&P 500 both fell around 1.4 percent while the tech-heavy Nasdaq Composite plummeted 1.8 percent.
European stocks fell notably on Tuesday as investors assessed regional economic data, a slew of corporate earnings and the higher-than-expected U.S. CPI reading.
The pan European STOXX 600 lost 1 percent. The German DAX shed 0.9 percent, while France’s CAC 40 and the U.K.’s FTSE 100 both dipped around 0.8 percent.
Market Analysis
Sensex, Nifty Set To Fall Amid Global Selloff
2024-02-14 02:34:17
