Indian equity markets are poised for a cautious uptick as they open on Monday, with investors gearing up for the early days of President Trump’s anticipated second term. The inauguration is scheduled for later today, and market analysts are forecasting a flurry of executive orders on issues like immigration soon after he takes the oath of office.
There is widespread anticipation of significant policy shifts, especially concerning proposed tariffs, which could negatively affect nations such as China, Canada, and Mexico. Throughout this week, we expect Foreign Institutional Investor (FII) flows, movements in oil prices, budget expectations, and third-quarter earnings to influence market sentiment.
Key players in the market such as Hindustan Unilever, HDFC Bank, ICICI Bank, BPCL, and Hindustan Petroleum are slated to release their quarterly financial results this week. Last Friday saw the Sensex and Nifty indices depreciate by approximately 0.5 percent each, interrupting a three-day stretch of gains.
This morning, Asian markets have generally risen, buoyed by a constructive dialogue between President Trump and China’s President Xi Jinping on issues that include TikTok, trade, and Taiwan during their phone interaction last Friday. Despite the gains, upward momentum was restrained as China's central bank maintained its benchmark lending rates, owing to pressures on the yuan.
Meanwhile, the dollar remained stable near a two-year high in Asian markets, and gold traded below $2,700 per ounce amidst signs of easing tensions in the Middle East. Oil prices experienced a slight increase due to ongoing worries about Russian sanctions.
In the United States, stock markets experienced a significant rally on Friday, marking their first weekly advance in three weeks, spurred by optimism regarding economic health and interest rate trajectories. December’s industrial production exceeded forecasts, and a separate report highlighted that U.S. single-family homebuilding reached a 10-month peak.
The tech-centric Nasdaq Composite jumped 1.5 percent, with the S&P 500 and the Dow climbing 1 percent and 0.8 percent, respectively, achieving their most substantial weekly gains since the presidential election week in November.
European markets ended higher on Friday, reflecting a positive outlook towards potential interest rate reductions following dovish remarks from Federal Reserve Governor Christopher Waller and ECB Governing Council member Yannis Stournaras. The pan-European STOXX 600 increased by 0.7 percent, marking its fourth consecutive weekly ascent. The UK’s FTSE 100 surged 1.4 percent to close at a record high, while Germany’s DAX and France’s CAC 40 escalated by 1.2 percent and 1 percent, respectively.
It’s important to note that U.S. stock exchanges will remain closed today in observance of Martin Luther King Jr. Day.
The material has been provided by InstaForex Company -
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