The United States Federal Reserve's large rate cut of 50 basis points (bps) - the first since 2020 triggered volatility across asset classes. US equities ended lower on Wednesday, as did spot gold in the international market. Asian equities, however, saw meaningful gains Thursday morning, while Indian stocks hit record highs.
Analysts said the trends were on account of Fed chair Jerome Powell beginning the easing cycle with a bumper cut but then saying that the US economy is in good shape. The statement may keep investors cautious for a while.
Analysts said the US is nowhere near a recession but there are signs of an economic slowdown, which will dictate the pace of rate cuts going ahead. "Markets are pricing in around 60 bps (basis points) of easing for 2024 and 150 bps for 2025 - significantly more than the Fed's projections. Most asset classes gave up their gains overnight, as Powell cautioned against expecting larger cuts going ahead," said Emkay Global Financial Services. The US rate cut may shape various asset classes, requiring investors to tweak their portfolios
Impact on equities
この記事は Business Standard の September 20, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Business Standard の September 20, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Global PE firms turn to India for Asia leadership
This comes amid slowdown in deal-making in China
GLOBAL INVESTOR CONSORTIUM LINES UP ₹2,100 CRORE INVESTMENT FOR SP GROUP
Engineering and construction major Shapoorji Pallonji group is gearing up to receive investments of over ₹2,100 crore from a consortium of global investors led by Deutsche Bank, according to sources.
Binance detaches self from liabilities after WazirX hack
Global cryptocurrency giant Binance has asserted that it never owned or controlled WazirX before or after the embattled Indian exchange was hacked in July that led to a security breach of more than $230 million.
Indian carriers soar on int'l routes but foreign rivals lead
Indian airlines are ramping up their international presence by adding more direct flights.
SC dismisses curative pleas by telcos against AGR dues
The Supreme Court has rejected curative petitions seeking a review of its 2019 judgment on adjusted gross revenues (AGR) payable by telecom firms.
Strong hybrid car sales take off in UP after tax waiver
Monthly sales of strong hybrid cars in Uttar Pradesh have more than doubled following the state government's decision to scrap the registration tax on such vehicles from July 5.
In export push, govt steps in to raise container capacity
Commerce Minister Piyush Goyal announces purchase of second-hand vessels
Govt asks EY India to explain position on CA's death
The Union labour ministry has asked EY India's management to appear before it and explain its position regarding the death of its 26-year-old employee, Anna Sebastian Perayil, a senior labour ministry official said.
Samsung India sues union over disruption
Electronics' India unit has sued members of a labour union that has led a strike for 11 days at its only Indian home appliances plant in Tamil Nadu, escalating tensions with its workers, legal papers show.
'Australia seemed like a natural-growth area for us'
RPSG group-owned business process management (BPM) firm Firstsource has announced its expansion into Australia and New Zealand. SANJIV GOENKA, chairman, RPSG, in an interview tells Ashutosh Mishra in New Delhi that this will open up avenues for the company and create jobs locally. He gives insights into the plans to increase margins for Firstsource in the next 30 months through organic and inorganic growth. Edited excerpts:
