Global and Indian Market Update: January 18, 2025
As of January 18, 2025, both global and Indian markets have experienced notable movements influenced by economic indicators, policy expectations, and commodity price fluctuations.
Global Market Overview
• Equities: Global shares have risen alongside the dollar, while U.S. bond yields have turned higher. This movement is attributed to investor optimism surrounding potential policy decisions and economic data.
• Bond Yields: The U.S. 10-year Treasury note yield ended January 17, 2025, at 4.61%. The 2-year note concluded at 4.27%, and the 30-year note at 4.84%.
• Commodities:
• Gold: Gold prices are poised for a third consecutive weekly gain, standing near a five-week high at $2,711.63 per ounce. This trend is driven by renewed expectations of multiple interest rate cuts from the Federal Reserve following recent U.S. inflation data.
• Silver: Silver prices have surged by 31.2% year-on-year, closely mirroring gold’s 31.7% increase. Recent expectations of a more hawkish Federal Reserve have contributed to this rise.
Indian Market Highlights
• Equities:
• Axis Bank: Shares of Axis Bank declined by 4.71%, closing at ₹991.25.
• Reliance Industries: The stock price increased by 2.57%, reaching ₹1,301.30.
• Currency: The Indian rupee has weakened due to strong headwinds, leading banks to lower forecasts.
• Corporate Developments: ICICI Lombard General Insurance reported a 68% rise in net profit for Q3, amounting to ₹724 crore, despite a marginal drop in gross premium.
Global Economic Factors
The inauguration of President-elect Donald Trump’s second term introduces potential uncertainties in global trade policies. Analysts caution that new tariff measures could pressure equities, suggesting strategic trades to mitigate risks.
Conclusion
The interplay of policy expectations, economic indicators, and commodity price movements continues to shape global and Indian markets. Investors are advised to stay informed and consider diversified strategies to navigate the evolving financial landscape.
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