Cycling Financial News

Subscribe to enjoy similar stories. Taiwan’s central bank held interest rates steady with a watchful eye on inflation, declining to join the U.S. Federal Reserve and a growing number of its Asian counterparts in starting to ease monetary policy.

Subscribe to enjoy similar stories. In a bold move, the US Federal Reserve kick-started its monetary policy easing cycle with a 50 basis point (bps) interest rate cut, bringing the Fed funds target range to 4.75-5%. The market was widely anticipating a 25 bps rate cut (one basis point is 0.01%).

As September is underway, Keynes' famous words resonate deeply within the financial community.

Vinod Karki, Equity Strategist,ICICI Securities, says some growth concerns are seen on the defensive side. Cyclicals are growing faster, and there are growth concerns in the IT sector and a lot of concerns on the agri-rural economy. This year, we had a massive heatwave and now a lot of rainfall. The temporal and spatial distribution has been pretty uneven, and so the outlook is not looking that good. IT services and consumption have seen growth issues overall. The valuation is at a record high. So, even though the cyclicals are expensive, there might be some shifts there. On Thursday, the Supreme Court rejected telecom firms' pleas to recalculate adjusted gross revenues (AGRs) amid ongoing disputes over government dues. Vodafone India, Bharti Airtel, and others argued that the Department of Telecommunications erred in calculating license fees and spectrum charges. This particular news development coming in, is not too positive for Vodafone Idea or the telecom space as a whole. Do you have a view on the telecom space?

US interest-rate cuts after the Federal Reserve reduced its benchmark by half a point and signaled more cuts coming this year. The market is now pricing in another 70 basis points worth of rate reductions at the Fed’s two remaining meetings this year, reflecting a far more aggressive stance than policymakers. Officials on Wednesday forecast just a half-point of further easing in 2024, though Chair Jerome Powell made clear that Wednesday’s decision wasn’t indicative of the pace ahead for cuts.

Subscribe to enjoy similar stories. IndiGo’s flight expansion plan is facing headwinds due to the grounding of over 70 aircraft on account of problems with its Pratt & Whitney engines. The grounding has implications for the aviation sector and air fares.

Subscribe to enjoy similar stories. The Federal Reserve’s decision to lower interest rates by half a percentage point, announced on September 18th, is momentous for two reasons. As the first cut by America’s central bank since it lifted rates to quell inflation, it marks the start of a monetary-easing cycle.

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

Hitting the bull’s-eye on the two per cent inflation target in August was “good news” for the Bank of Canada, but it doesn’t mean the central bank’s efforts are done, according to a senior official.

Narendra Modi asserted on Wednesday that the Union Cabinet approving the recommendation to hold national and state elections simultaneously is an important step towards making India's democracy even more vibrant and participative. The cabinet on Wednesday accepted a high-level panel's recommendations for holding simultaneous polls for the Lok Sabha, state assemblies and local bodies in a phased manner after a countrywide consensus-building exercise.

US Federal Reserve's rate outcome due for announcement later on Wednesday night, a look into the history of the last three decades reveals Nifty's median returns of +1.6% following a 50 bps rate cut by the Fed. Meanwhile, a 25 bps cut has resulted in a median loss of 0.5%. The above findings were from a Capitalmind Financial Services study, which showed that the Fed announced a 50 bps rate cut 10 times in the last 34 years while the most frequent action by the Central Bank has been an increase of 25 bps, which has been done 39 times.

Best LG washing machines: Top 8 picks for the perfect laundry care at home for clean, sparkling clothesThe Samsung 9 Kg Fully Automatic Front Load Washing Machine is designed for large families. With advanced AI Control and Eco Bubble Technology, it delivers a powerful yet gentle wash, ensuring thorough cleaning while preserving fabric quality. The 1400 RPM spin speed allows faster drying, and its 5-star energy rating ensures efficient power consumption.

Manish Singh, Market Expert, says the reason the Fed is going to cut by 50 bps and why it should cut 50 bps is that if the inflation is on track to be at 2%, (it is at 2.5% now), what justifies the rates being this restrictive, as we have seen the most rapid increase in rates in the last 40 years. The rates have been at 5.25% for 14 months. What justifies it being at this high restrictive level? There is no point. So, for that reason you are going to get 50 basis point cut. While most analysts were holding the view that the American economy is fine, there is no recession right now or even on the horizon, a soft landing with a 25 basis point cut was turning up to be the consensus view. But now things have slightly changed in the run-up to the FOMC meet. Have not they? A 50 basis point rate cut does not seem completely unlikely. Manish Singh: No, it is not unlikely and we are going to get that and it is justified. Because if you look at where the two-year rate is, the two-year treasury yield is at 3.57% and the upper bound of the Fed fund rate is 5.5%, so we are talking about 190 basis point spread. You have to go back to 2008 to see the spread this wide.

Baroda BNP Paribas Multicap Fund has completed 21 years and crossed Rs 2,500 crore assets under management (AUM). The fund is an open ended equity scheme investing across large cap, mid-cap and small cap stocks. In the last one year, the scheme has offered 47.22% return against 41.01% by its benchmark (Nifty 500 Multicap 50:25:25 — TRI). The scheme gave 20.99% return in the last three years against 21.04% by the benchmark. Since its inception, the Baroda BNP Paribas Multicap Fund has offered 17.51% return. A monthly SIP of Rs 10,000 made in this fund since the inception would have turned Rs 1.58 crore.

interest rate cuts almost certain in the current calendar year, non-banking lenders are poised to benefit the most, offering better risk-reward ratio in the current market conditions. The US Federal Reserve is expected to initiate a rate-cut cycle, either in its latest meeting or the following one. Once the Fed begins easing key interest rates, the Reserve Bank is likely to follow suit, aligning its monetary policy accordingly.

Smaller Southeast Asian markets may continue to do better than larger ones, while a significant rise in the yen might cause volatility in the Japanese market and high-performing chip stocks. Fear of an unwind in the yen carry trade has the potential to hit markets globally.

«Because there is growth slowdown and I have been in India for the last couple of days and there are visible signs of slowdown, whether it is real estate in northern India or consumption part of the economy,» says Rahul Chadha, Shikhara Investment. What is it that you are making of the market right now? I mean, all the valuation concerns aside, markets and not just us, globally, they do not want to stop. Rahul Chadha: I think what markets are looking is what Fed would do tomorrow. So, September 18th is when Fed comes for a meet and clearly, we are seeing globally economic data being soft but the hope is that policymakers, particularly here, the central banks come quickly, act quickly, and cut rates quickly, so which is where 50 bps cut from Fed would be reassuring and we have had some statements from the Fed members saying that Fed should go to neutral rates very quickly.

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

As the Federal Reserve gears up for potential shifts in monetary policy, Bitcoin enthusiasts and market analysts are closely monitoring its impact on the cryptocurrency market. Bitcoin’s price, which has experienced subdued activity over the past six months, may see a major upswing, with some analysts forecasting significant moves in Q4 2023 and beyond.

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...