Today, we expect a flat to cautious start and another choppy day. With F&O expiry just a day away, it would be wise to remain non-committal. The main indices will remain mostly sluggish in a tight range. Global events will continue to drive the sentiment. Concerns about banks came back to haunt China and Europe. In the US, stocks lost some ground amid persistent economic worries. A slow recovery is what the Fed predicts for the US along with high unemployment. This means rates will remain near zero for a few more months. The so-called ‘exit’ from the accommodative monetary policy is still some distance way. This holds true not just for the US, but for all the nations, including India.
What this also means is there is no danger to the dollar carry trade. But, it would be interesting to see how the markets behave once the dollar bottoms out. That unwinding, whenever it unfolds will have a bearing on global equities. Whether the economic recovery picks up further momentum or fizzles out will also be keenly followed.
What this also means is there is no danger to the dollar carry trade. But, it would be interesting to see how the markets behave once the dollar bottoms out. That unwinding, whenever it unfolds will have a bearing on global equities. Whether the economic recovery picks up further momentum or fizzles out will also be keenly followed.
