InvestorQ : What are the major trading and investment cues for the week beginning on 09th of September.
Dia Deshpande made post

What are the major trading and investment cues for the week beginning on 09th of September.

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Ria Jain answered.
12 months ago

The coming week is once again likely to be a truncated week due to a trading holiday on September 10. The main cues for the week will be as under.

· The positive cues on the trade war front will be a major positive for the market overall. Both the US and China have agreed to start trade talks in the month of October and the US has also agreed to keep the Huawei issue out of the discussions. This is likely to be received by the global markets positively.

· The markets are also likely to react to the Fed Chair statement that the Fed would keep rates appropriately adjusted to keep the economic engine growing. This already had its impact on oil prices on Friday and is likely to keep the markets buoyant in the coming week on the back of liquidity concerns being addressed.

· There could be some concerns on the US farm payrolls front. There was actually a rise in the jobless claims during the week and that is likely to keep the markets slightly worried as it shows that the US is actually feeling the pinch of the trade war.

· The crude and the rupee will be two key economic parameters for the week. The crude prices have crossed the $61/bbl on global revival expectations. However, the overhang of US inventory build will continue to be an overhang on the markets. Apart from the crude prices, the rupee will also be a key factor in the entire story. The rupee has found some central bank support at around the 72/$ mark and has appreciated to Rs.71.70/bbl.

· In the first week of the month, the FPIs have sold nearly $800 million worth of equities and the scrapping of the tax surcharge on equities has not really had any impact. However, the inflows into debt continue and that looks more like an intra-asset class reallocation.

· There are two important macro numbers that will be announced in this week. Both the CPI inflation number for August and the IIP growth number for July will be announced on September 12. This will be a critical data point and markets would want to ensure that inflation remains low. If the IIP continues to remain tepid, then it will make a fit case for the RBI to aggressively cut rates in its October policy meet.