Thursday, December 19, 2024

Global Market Update date 13.11.24

Global Market Update – Better than expected US Q3 GDP and Personal Consumption data lifted US market up to 1% …Dollar Index surging to 2-year high …Share of Accenture is up 7%...INFY ADR up by 3%

· US stocks kicked off Thursday’s session higher, suggesting that the selloff after the Federal Reserve signaled fewer rate cuts next year was overdone. The yen slid as the Bank of Japan left borrowing costs unchanged. The S&P 500 rose 1% following its biggest loss for a scheduled Fed decision day since 2001. The Nasdaq 100 jumped 0.9%. The 10-year US Treasury yield rose to 4.54%, a level last seen in May. US Q3 GDP reported better than expectation at 3.1% vs 2.8% previous quarter, better than Bloomberg estimated of 2.8%. Personal Consumption surged to 3.7% vs 3.5% previous quarter, better than Bloomberg estimated of 3.6%.

· European stocks dropped after the Federal Reserve’s hawkish comments signaled fewer interest-rate cuts than anticipated next year. Both France and German Index declined 1% each. However, UK Index pared a decline slightly after the Bank of England maintained its main rate at 4.75% and signaled it will keep easing gradually in 2025.

· Gold dropped 1% to below $2600/ounce falling to five-week low after the Federal Reserve indicated it expects to slow the pace of interest-rate cuts in the new year, sending the dollar to a two-year high. US Dollar Index surging to 2-year high of above 108 level.

· Oil held within its recent range as expectations for fewer interest-rate cuts by the US Federal Reserve next year boosted the dollar. Brent crude edged higher above $73 a barrel

· FIIs were net sellers Rs4225 while DIis were net buyers Rs3943cr

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