US Federal Reserve’s FOMC is set to announce its interest rate decision later today
Crude oil prices held steady after previous session’ 1 per cent gains on drone attacks on Russian port and refineries
Wall Street’s three key indices ended lower overnight, while Asian stocks largely traded negative in early trade today
Market Cues Today: US Fed Meeting, Crude Oil Price, Among Other Factors To Impact Trade
Here are the key domestic and global market cues that are likely to impact trading on D-Street on September 17
Summary
Advertisement
A host of global and domestic factors are likely to impact trade on September 17.
In the previous session, benchmark indices closed with gains, led by expectations of a US Federal Reserve rate cut, and renewed India-US trade talks.
The broader market too ended with gains, with the Nifty Midcap 100 closing 0.54 per cent higher and the Nifty Smallcap 100 ending 0.95 per cent up.
Share Market Cues Today
The following factors, along with other global and domestic developments, are likely to influence market sentiment and trading activity throughout the day.
US Federal Reserve Meeting
US Federal Reserve’s rate-setting panel Federal Open Market Committee is set to announce its decision on interest rates later today. Market participants widely expect the American central bank to cut rates. According to the CME FedWatch Tool, 96.1 per cent of traders are expecting a 25 basis points (bps) rate cut. Currently, American interest rates are in the range 4.25 per cent to 4.50 per cent. Typically, a rate cut means higher foreign fund inflows into emerging markets, including India.
Advertisement
Crude Oil Price Today
Crude oil prices were steady in early trade on September 17 after rising more than 1 per cent in the previous session. The earlier gains came after Ukraine carried out drone attacks on key Russian ports and refineries. Following the attacks, Russia’s oil pipeline operator giant Transneft warned producers that they might need to cut output, sparking concerns over oil supply issues.
Brent crude November futures slipped 0.19 per cent to trade at $68.34 per barrel, as of the time of filing this report, while West Texas Intermediate (WTI) crude oil futures declined 0.15 per cent to quote at $64.42 per barrel.
India-EU FTA
Danish Prime Minister Mette Frederiksen on September 16 expressed strong support for a fair and an early conclusion of the India-European Union (EU) Free Trade Agreement (FTA) in a call with Prime Minister Narendra Modi. Both leaders also agreed to strengthen the India-Denmark Green Strategic Partnership in areas like trade, investment, energy, and sustainable development, an official statement said.
Advertisement
Gold Price Today
Gold prices slipped in early trade on September 17 ahead of the US Federal Reserve's FOMC meeting.
Domestically, October Gold futures slipped Rs 276, or 0.25 per cent to trade at Rs 1,09,880 per 10 grams on the Multi Commodity Exchange (MCX). In the previous session, the contract had touched a fresh record high of Rs 1,10,666 per 10 grams.
Internationally, December Gold futures on COMEX traded lowr by $7.10, or 0.19 per cent at $3,718 per ounce.
US Stock Market
US stock market’s three main indices closed lower overnight after a volatile session in anticipation of a potential US Fed rate cut.
The Dow Jones closed at 45,757.90, down 0.27 per cent, the S&P 500 ended at 6,606.76, down 0.13 per cent, and the tech-heavy Nasdaq Composite finished at 22,333.96, down 0.07 per cent.
Advertisement
Asian Stock Markets
Asian stock markets largely traded in the negative after a weak session on the Wall Street.
China's SSE Composite traded higher by 0.41 per cent, the Hong Kong-based Hang Seng was up by 1.41 per cent, and Japan's Nikkei was up by 0.15 per cent, at the time of filing this report. On the other hand, South Korea's KOSPI traded in the red, down by 0.76 per cent.
Show comments
Published At:
Tags