Global Markets Brace for Consolidation Amid Inflation Anxiety

Ira Singh
Khabar Khabaron Ki,12 Feb’24

As global markets continue their volatile journey amid economic uncertainties, investors are bracing themselves for a period of consolidation, ahead of release of inflation data from United States, United Kingdom and India, as hawkish commentary from the Federal Reserve and Reserve Bank of India and diminishing hopes of early rate cuts has turned investors cautious.With inflation data on the horizon, all eyes are on key indicators that could dictate market sentiment in the coming weeks.

Moreover, this week marks the end of third quarter earnings season which has been a mixed bag so far. Many state-owned companies like Coal India, HAL, SAIL, Mazagaon Dock, ONGC, Nalco, Oil India, and IRCTC among others will be declaring their results which investors will keenly watch out for after the profit booking witnessed on Friday.

Apart from inflation, India’s industrial production along with US retail sales data will be tracked. Also, Japan, UK and Eurozone will release GDP numbers, according to information.

The RBI’s hawkish tone in its recent monetary policy announcement has tempered investor sentiment, despite maintaining status quo on interest rates. However, the positive assessment of domestic economic activity offers some respite amid concerns about inflation and policy tightening.