Fed hike date

Representative image The pound tumbled after the Bank of England raised interest rates by just a quarter of a percentage point despite surging inflation, while oil prices jumped after OPEC+ only modestly hiked production. The quarter-point hike apparently disappointed investors looking for the BoE to act more forcefully to combat surging prices as the central bank now expects annual inflation to rise above 10 percent this year and the economy to contract later this year. It also followed the Federal Reserve's decision Wednesday to raise US interest rates by half a percentage point as inflation soars also in the world's biggest economy. The British pound plunged more than two percent to $1.2362 after the BoE decision, although it recovered some ground. "Although the market had priced in a 0.25-percent (rate) rise, there had been some expectation that the Bank of England would... follow the lead of the Federal Reserve in increasing interest rates by 0.5 (percentage … [Read more...] about Pound slumps after tepid Bank of England rate hike

Reserve Bank of India (RBI) governor Shaktikanta Das announced a 40-basis-point (bp) hike in the key lending rate and raised the cash reserve ratio (CRR) by 50 bps in an unscheduled announcement on May 4. This is the first such unscheduled statement from the RBI governor since the start of the pandemic in 2020. The announcement surprised the markets, pushing up bond yields and putting pressure on the equity indices. In an interview with Moneycontrol, Madan Sabnavis, chief economist, Bank of Baroda, shares his views on the RBI rate hike. Edited excerpts: Was the 40-bp rate hike a surprise? Yes, it was a surprise for two reasons. There was no official data point which had come since the last policy except the CPI (Consumer Price Index) inflation number which anyway was expected to be close to 7 percent. Second, the quantum of 40 bps appeared to be high considering that the market was expecting 25 bps at a time. Close Also Reads | Another 25 basis-point … [Read more...] about MC Interview | Bank of Baroda’s chief economist on why did RBI choose to hike rates off-policy

Battered U.S. stocks are facing a potentially painful stretch in the weeks ahead, as hawkish Federal Reserve policy, rising bond yields, geopolitical uncertainty and the corporate earnings season fuel investor unease. After last week’s sharp decline, the S&P is down 5.7% so far in April and is on track for its worst monthly drop since March 2020, when the spreading COVID-19 pandemic blasted stocks. One measure of investor anxiety, the Cboe Volatility Index, known as Wall Street’s fear gauge, on Friday notched its largest one-day gain in about five months to close at a five-week high of 28.21. “More variables in any equation create greater uncertainty in terms of the outcome,” said Michael Farr, president of Farr, Miller & Washington. “We have more variables now than I can remember in my career.” Chief among market participants' worries is a Fed that has repeatedly ratcheted up its hawkish rhetoric as it gears up to fight the worst U.S. inflation in nearly 40 … [Read more...] about Bruised Wall Street faces gauntlet of worries after market tumble

The first step to managing finances and investing in the stock market should be taking ownership of the task and one needs to define her goals and the time horizon for the investment, according to Shibani Sircar Kurian, Senior EVP and Head - Equity Research at Kotak Mahindra Asset Management Company. Kurian believes that 2022 would be a year of bottom-up stock picking. "While the market may not be cheap on valuations, some stocks have corrected. We have a slight preference for large-caps over mid- and small-caps given the current valuations in each of the segments," she shares during an interaction with Moneycontrol . Excerpts from the interview: On Mother's Day, what is your great advice to women who are new to the stock market and what are the investment mantras you would want to share with them? I believe that the first step to managing your finances and investing in the stock market would be to ‘take ownership’ of the task. Investing would mean differently for women … [Read more...] about Daily Voice | Shibani Kurian of Kotak AMC shares investment mantras for women

- A + A NEW YORK (May 14): Investors are studying an array of indicators for clues about how much further a brutal slide in US stocks could run, with some signs suggesting the tumble in equities may not be over. The S&P 500 extended its decline to nearly 20% from January’s record peak on Thursday before an end-of-week bounce, approaching the cusp of a bear market amid concerns that persistently high inflation will prompt more aggressive US Federal Reserve (Fed) interest rate increases that could undermine the economy. Declines have been even steeper in the tech-heavy Nasdaq Composite, which is down 24.5% year-to-date. Despite those losses, many widely followed indicators do not yet show the pervasive panic, supercharged volatility and outright pessimism that have emerged in past market bottoms, a potentially worrisome signal for those looking to step in and buy on the cheap after the most recent sell-off of stocks. Indeed, stocks ripped higher on Friday (May … [Read more...] about Signs of market bottom elude investors after steep sell-off

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × The market is almost flat so far in current calendar year with the Nifty50 rising seven-tenth of a percent, against more than 24 percent jump seen in previous year. Elevated commodity prices due to supply concerns, margin pressure in corporate earnings, Ukraine-Russia crisis, heavy FII outflow, and expected 6-7 rate hikes by Fed this year weighed on the market. The broader markets have also seen similar kind of performance with the Nifty Midcap 100 rising more than a percent and Smallcap 100 index falling nearly 5 percent in 2022. Among sectors, Energy (up 24 percent), Metal (up 20 percent), and Oil & Gas (up 12 percent) were the biggest gainer, followed by Bank, FMCG, and Infra. IT was the biggest loser (down 11 percent), followed by Auto, Pharma and Realty. Stocks have been in … [Read more...] about What should investors do with Adani Green, Sharda Cropchem, Bharat Dynamics and GNFC, which rallied the most in 2022 so far?

Representative image Another stormy week has left investors groping when it comes to the direction of stocks and bonds. Expecting to be led out of the darkness by Wall Street’s best and brightest may be asking too much, given their performance so far this year. As usually happens in twisting markets, it is proving a brutal year to forecast for the securities industry. Back in January, stock strategists known for their enduring optimism expected the S&P 500 to add 5% in 2022. Down 2.4% for a sixth straight weekly decline, the index plunged as much as 19.5% on Thursday from its record. Bond strategists weren’t any more prescient. Interest rate strategists and economists were calling for 10-year Treasury rates to rise to 2% by June. Yields took out that level in early February and have touched 3.2% this month. ALSO READ: World equities rise on bounce in United States, European markets Turns are hard to capture -- that’s nothing new. This year, a collective inability … [Read more...] about Crazy markets are shredding Wall Street stock and bond forecasts

Traders at the New York Stock Exchange on March 9, 2020, as stocks plunged amid mounting worries over the coronavirus. Photographer: Timothy A. Clary/AFP/Getty Images Anyone checking their investment accounts at the moment will presumably recoil in shock—and then think about putting more money to work. After all, history reveals periods of intense Wall Street fear are ultimately good buying opportunities, a pattern that’s duly nurtured a generation of investors primed to “buy the dip” during major equity and credit market routs. One of the most memorable, short-lived dips in asset prices was the pandemic low of early 2020, and that’s a good starting point for investors trying to make sense of what ails markets today. The culprit stirring up market volatility and punishing asset prices isn’t hard to spot. A soothing tide of fiscal and monetary stimulus that started in 2020 is now retreating as central banks try to counteract the highest pace of inflation in four decades. … [Read more...] about The investing party may be over, but markets might make sense again

Representative Image (Reuters) Growth stocks led a rebound in Wall Street's main indexes on Friday at the end of a week marred by worries about the worsening outlook for economic growth, while Twitter sank after Elon Musk put his deal for the social media company on hold . All the 11 major S&P sectors advanced in early trading, with technology stocks rising 2.7% and 3.3%, respectively. Growth stocks such as Apple Inc, Google-owner Alphabet Inc, Amazon.com and Nvidia Corp gained between 2.2% and 6.5% after falling for most of the week. Wall Street has gyrated wildly this week on fears that the Ukraine war, surging inflation, COVID-19 lockdowns in China and hawkish Federal Reserve policy moves could spark a global economic slowdown. Fed Chair Jerome Powell repeated on Thursday his expectation that the central bank will raise interest rates by half a percentage point at each of its next two policy meetings while pledging "we're prepared to do more" if data turns … [Read more...] about Wall Street rallies as growth stocks rebound, Twitter slides