Discussion on global economy and financial markets - Page 48

Originally posted by: mishkil88

rate cut brings great hopes of good rallies in equity markets globally. But how far they can go higher and higher from here ?

My hunch is that there will be a correction before the rate cut.

Indian markets are bracing for union budget announcement next week on July 23rd.

S&P 500 futures edged higher on Tuesday, as investors saw reasons for optimism in the latest retail data and Bank of America's stronger-than-expected earnings report.

Futures tied to the broad index and Nasdaq 100 futures gained 0.2% and 0.3%, respectively. Dow Jones Industrial Average futures rose 103 points, or 0.3%.

Bank of America rose more than 2% before the bell after earnings came in ahead of analyst forecasts. On the other hand, Morgan Stanley slipped more than 2% despite also beating expectations after a big run up into the release. They're the latest household names to post quarterly financial results as the new reporting season kicks into gear.

Retail sales data also came in better than anticipated, which could ease concerns that the consumer was buckling. June sales came in unchanged, while economists polled by Dow Jones predicted a decline of 0.4%. Excluding autos, sales rose 0.4%, a larger gain than the 0.1% consensus forecast.

https://fortune.com/europe/2024/07/16/google-had-e470-million-to-spare-so-it-offered-to-derail-microsofts-antitrust-pact/

IMF forecasts 'bumps' in disinflation path

The International Monetary Fund warned Tuesday that upside risks to inflation have increased, calling into question the prospect of multiple Federal Reserve interest rate cuts this year.

In its latest World Economic Outlook update, the IMF said "the momentum on global disinflation is slowing, signaling bumps along the path." The rise in sequential inflation in the U.S. earlier in 2024 has put it behind other major economies in the quantitative easing path, the report said.

The report comes as traders ramp up bets for a Fed rate cut in September. Per the CME Group's FedWatch tool, Wall Street has priced in a 100% chance of lower rates at the Sept. 18 meeting. Traders also expect another rate decrease in November.

The Nasdaq is diving on Wednesday as the prospect of lower interest rates shifts interest to smaller companies over the high-value technology firms that have recently driven gains. The Dow Jones Industrial Average and S&P 500 indexes are also dropping today.

Comments from Donald Trump also appear to be hitting chip stocks. The former president, who is now favorite to win November's election, said Taiwan should be paying the U.S. for protection and accused it of stealing America's semiconductor business.

China has long threatened to invade the island to bring it back under the control of the mainland. Taiwan is the dominant country in the global chip industry and a critical part of the supply chain.

Benchmark indices Nifty and Sensex hit new record highs on July 19, extending gains for the fifth session in a row ahead of the Union budget. This comes just a day after the Sensex cruised past 81,000 and Nifty attained a new high of its own.

However, soon after the opening, the frontline indices slipped into the red as investors booked partial profit.

The Sensex was down 0.15 percent at 81,222 and the Nifty was down 0.16 percent at 24,762. About 944 shares advanced, 1,444 shares declined, and 113 shares unchanged.

IT heavyweight Infosys was buzzing in trade after a robust Q1 and positive guidance prompted brokerages to issue bullish calls on the counter.

https://www.moneycontrol.com/news/business/microsoft-global-outage-rbi-clarifies-only-10-banks-and-nbfcs-had-minor-disruptions-12773336.html

Contrary to MS claims, many flights stands cancelled today worldwide.

https://www.indiatoday.in/world/story/microsoft-windows-outage-live-banks-airlines-worldwide-stock-exchanges-crowdstrike-2569066-2024-07-19

Microsoft Corp. and CrowdStrike have rolled out fixes, and systems are gradually being restored. But for several hours, bankers in Hong Kong, doctors in the UK and emergency responders in New Hampshire found themselves locked out of programs critical to keeping their operations afloat. Some businesses are facing the prospect of continued disruptions as the restoration process is, in some cases, requiring tech workers to manually reboot systems and remove faulty files.

Read more at:

https://economictimes.indiatimes.com/news/company/corporate-trends/microsoft-cloud-outage-from-atms-to-stock-trading-and-flights-epic-it-crash-leaves-trail-of-chaos/articleshow/111875663.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

K Rammohan Naidu said since 3am, airline systems across airports have started working normally. Flight operations are going smoothly now, he added.

https://www.hindustantimes.com/india-news/civil-aviation-ministry-big-update-on-airport-flight-operations-a-day-after-massive-microsoft-global-outage-101721449325743.html