Uday Kotak of Kotak Bank shows THIS wild card as he warns to be ready for turbulence
Is China going to default? Fitch cuts rating to negative Also Read: Will India overtake China to become world's economic heavyweight by 2028? Meanwhile, the US consumer price index (CPI) rose 0.4 per cent month-on-month (MoM) and 3.5 per cent year-on-year (YoY), above the Street expectations of 0.3 per cent MoM and 3.4 per cent YoY, according to data released by the Labor Department's Bureau of Labor Statistics on Wednesday, April 10. Core inflation, which the Fed tracks closely, grew 0.4 per cent MoM against the expectations of a 0.3 per cent increase.
On a YoY basis, core inflation grew 3.8 per cent while Street expected an increase of 3.7 per cent. Also Read: US inflation beats Wall Street estimates, rises 0.4% in March; Fed's June rate cut hopes fade away Most experts now believe there may be no Fed rate cuts in June due to sticky inflation and a resilient US economy.
A delayed rate cut is bad news for emerging markets including India as it may trigger fresh foreign capital outflow. Also Read: US Fed rate cut unlikely in June as US inflation hots up.
What this means for Indian investors and what should they do? "This is the third successive 'hot' CPI print and has completely shaken expectations of both the extent and the timing of rate cuts in 2024. We continue to maintain that the Fed will not cut rates this year, on the back of hotter inflation and slowing-yet-stable growth," said Madhavi Arora, Lead Economist at Emkay Global Financial Services.
Crude oil prices have been rising of late on supply concerns, thanks to rising tensions in West Asia. "Oil prices settled up $1 on Wednesday after three sons of a Hamas leader were killed in an Israeli airstrike in the Gaza Strip, feeding worries that ceasefire talks might
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