Mark Zandi says B2B sales growth worrying trend, which telling a compelling story that the US economy is growing well below its potential and could even stall
Expectations of ongoing rate hikes in the world's largest economy and in Europe have clouded the global growth outlook and driven both crude benchmarks down more than 5.5% so far this week, in their worst drop since early February.
The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75 percent.
“An unwarranted easing in financial conditions, especially if driven by a misperception by the public of the committee’s reaction function, would complicate the committee’s effort to restore price stability," the Fed minutes have said
''I don't see any adverse impact of that (rate hike by Fed) because Reserve Bank of India, in the two previous cycles, has already taken adequate measures," he said.
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Last week, the Sensex lost 1,141.78 points or 1.95 per cent, while the Nifty shed 303.70 points or 1.73 per cent.
The choices confronting US monetary policymakers are difficult and present a big danger to emerging markets like India
The US Fed rate hike is no surprise and may not impact RBI's policy next month as it had already factored in the global development and will be guided by local factors, said experts.
As an investment tool one can go for buying physical gold. But now-a-days with the innovation in products and to diversify against any future uncertainty, Gold bonds and Gold ETFs are becoming attractive options.
If we look at the performance of gold in the past 10 years, the main influence has been the US and its central bank policies which have been at the forefront for driving the price trajectory.
We expect the next leg to open on the upside & the yellow metal to inch towards the INR 31350 mark. A move past this resistance may even open the gates towards 32450 levels (which is the 52 week high)
After celebrating half year of prosperity, the metal is now witnessing a price-wise correction. However, this is just a breather and part of a healthy trend.
The Fed will hike not because it is concerned about inflationary pressures but more because it wants to signal that there is sufficient strength in the US economy to warrant a hike, said Nick Parsons of National Australia Bank.
Paul Sheard of S&P Ratings shares his views with CNBC-TV18 on a rate hike by the US Federal Reserve. He says the Fed is not in the business of surprising markets and the rate hike will be well-received by the markets.
In the midst of turmoil, companies that can beat global and regulatory setbacks will create wealth for investors and outperform their peers, says Nilesh Shah, CEO and MD of Envision Capital.
"The (Indian) market has rebounded time and time again, and it is hoped that as the global financial markets settle down, India can become the leading investment destination owing to its robust macroeconomic fundamentals," as per the 2015-16 report card of the state of the economy tabled by Finance Minister Arun Jaitley in Parliament today.