News

Published: August 20, 2024
Updated: August 20, 2024

Global Markets Rally Ahead of Key Economic Events

Positive Start Expected for Indian Stock Market

The Indian stock market is expected to open higher on Tuesday, following gains in global markets. Asian markets traded higher, while the US stock market rallied overnight led by tech stocks.

Global Market Cues

Asian markets traded higher on Tuesday, tracking overnight gains on Wall Street. Japan's Nikkei 225 rallied 1.1%, while South Korea's Kospi jumped 0.99%. Hong Kong's Hang Seng index futures indicated a higher opening.

US Stock Market Rally

The US stock market ended higher on Monday, led by tech stocks. The S&P 500 and Nasdaq extended their winning streak to eight consecutive sessions, the longest in 2024. Nvidia stock price rallied 4.35%, while Intel shares gained 3.11%.

China's Unchanged Lending Rates

China left benchmark lending rates unchanged at a monthly fixing on Tuesday, in line with market expectations. The one-year loan prime rate remained at 3.35%, while the five-year LPR was unchanged at 3.85%.

Oil Prices and Gold Rate

Crude oil prices traded lower on easing worries about a supply disruption in the Middle East. Gold prices held above the $2,500 mark, led by a weaker US dollar and Treasury yields.

Currencies and US Treasury Yields

The dollar hung near a seven-month low on bets the US central bank will start cutting interest rates from next month. US Treasury yields also declined, with the yield on the benchmark US 10-year note falling to 3.864%.

The Indian stock market is expected to open higher on Tuesday, following gains in global markets. With key economic events like the FOMC meeting minutes and Fed Chair Powell's speech at the Jackson Hole Economic Symposium, investors will be watching for indications of future interest rate policy.