Sensex is trading lower today, in line with other Asian stock
Dipanwita Mazumdar
Economist,
Bank of Baroda
Mumbai, January 10, 2024: Global markets remained cautious ahead of release of US CPI inflation data, which is expected to shed some light on the trajectory of Fed fund rate. However, some paring down of expectations is occurring with regard to the pace of normalisation in Fed policy. Even there are talks that rate cut may be pushed beyond Mar’24. On macro front, US Consumer credit data has picked up. In Germany, industrial production has fallen on a MoM basis. In Japan, real cash earnings have fallen at a sharper pace, raising hopes that the exit from ultra-dovish policy by BoJ may be delayed. In Australia, CPI slowed for the 2nd straight month, raising expectations that RBA may leave policy rate unchanged. In South Korea, unemployment rate rose to its near two year high as elevated rates have started impacting real economy. On domestic front, all eyes remain on IIP and CPI data releases.
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