#KnowGreater Weekly Market Recap (August 5, 2024)
#KnowGreater: Stay Ahead with OnePlatform Asset Management's Weekly Financial Insights. Here are key market news and updates for the coming week:
?Recent News Recap
?? U.S. ISM Services PMI Rebounds in July
The Institute for Supply Management's Services Purchasing Managers' Index (PMI) is expected to rebound to 51 in July, moving back into expansionary territory after a sharp contraction to 48.8 in June. This anticipated recovery would help alleviate concerns about an economic slowdown in the U.S. service sector.
?? Bank of Japan Raises Interest Rates
The Bank of Japan (BoJ) recently increased its policy rate to around 0.25% from a range of 0 to 0.1%, marking its second rate hike this year. The BoJ also provided more clarity on its quantitative tightening plan, aiming to reduce its monthly bond purchases to about ￥3 trillion by the first quarter of 2026. Market expectations suggest further rate hikes by the end of 2024.
?? Global Market Sell-Off Impacts Indian Stock Market
A global market sell-off, triggered by weak U.S. economic data and recession fears, has put pressure on the Indian stock market. The Nifty 50 index, which recently crossed the 25,000 mark, experienced a sharp correction on Friday. The India Volatility Index saw a 10% surge, reaching levels near 15.7. This sell-off is expected to continue impacting global equity markets, including Indian indices like Sensex and Nifty 50.
What to Watch This Week
?? U.S. Consumer Price Index (CPI) Release
The Bureau of Labor Statistics is scheduled to release the July Consumer Price Index (CPI) data on August 10, 2024. This key inflation indicator will be crucial for assessing the Fed's progress towards its 2% inflation target and could influence future monetary policy decisions.
领英推荐
?? Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS)
The Federal Reserve will release the Senior Loan Officer Opinion Survey on Bank Lending Practices on August 5, 2024. This survey provides insights into credit conditions and lending practices, which are essential for assessing the overall economic environment and potential impacts on monetary policy.
References:
Trade Setup for August 5: Sensex, Nifty to be hit by global market sell-off; Here are some key levels
Ahead of the game: 5 August 2024
Stock Market Live Updates 5 August 2024: Sensex, Nifty face volatility amid weak global cues; Nikkei plunges 6% as Asian markets slide
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