Adversitement
Market Watch: US Fed Interest Rate Decision Steers Global Sentiments
Published On : 2024-03-17T12:37:42+0530 [ IST ] |
Author : Mayur_Tembhare
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The upcoming week is poised to be a pivotal one for stock markets worldwide, with all eyes on the US Federal Reserve's interest rate decision. Analysts anticipate that this significant event, along with developments in global markets and foreign investor activities, will shape market sentiments and trading patterns.
Last week witnessed a sharp downturn, particularly impacting small and midcap firms, exacerbated by foreign fund outflows and soaring crude oil prices on the international stage. The prevailing volatility underscores investors' cautious stance amidst uncertain economic conditions.
According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd., the focus will be on monetary policy decisions, with the US Federal Reserve commencing its two-day policy meeting on March 19. The subsequent announcement of the interest rate decision on March 20, 2024, is poised to significantly influence market dynamics.
In addition to the US Federal Reserve's decision, attention will be on other global central banks, including the Bank of Japan (BoJ), which will announce its interest rate decision alongside China's loan prime rate for 1-year and 5-year loans. The release of Japan's inflation rate on March 22 further adds to the week's economic agenda.
The movement of key indicators such as the rupee-dollar exchange rate, US bond yields, and crude oil prices will remain crucial factors influencing market direction.
Last week witnessed substantial declines, with both the BSE benchmark and the NSE Nifty experiencing significant losses. Smallcap and midcap indices were particularly hard-hit, underlining the broader market turmoil.
Looking ahead, uncertainty prevails, prompting local investors to closely monitor global market developments before making investment decisions. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., emphasizes the potential impact of the US Fed's policy outcome and commentary on investor sentiment, given the prevailing economic uncertainties.
Moreover, as the focus shifts to the upcoming Lok Sabha polls in India, investors brace for additional volatility and market fluctuations. With the polls set to unfold in seven phases starting April 19, the political landscape adds another layer of complexity to an already uncertain market environment.
In conclusion, Vinod Nair, Head of Research at Geojit Financial Services, emphasizes the significance of global central bank decisions in driving investor sentiment. Against a backdrop of economic uncertainties and political developments, investors navigate a volatile landscape, closely monitoring key market indicators for cues on future market directions.
Source : Business Line
Tags : Lok Sabha polls , interest rate decision , US Federal Reserve , central bank decisions , global market trends , stock markets , foreign investors , monetary policy ,
Summary : Analysts predict that the stock markets will closely monitor the US Federal Reserve's interest rate decision, alongside global market trends and foreign investor activities. Last week's turbulence, marked by declines in small and midcap firms and foreign fund outflows, underscores the prevailing volatility. With multiple global central banks, including the US Federal Reserve and the Bank of Japan, slated to announce their monetary policy decisions, investors anticipate a rollercoaster week ahead. Additionally, attention will be on the Lok Sabha polls in India, adding to the market's uncertainty.
Adversitement