Nifty saw another weak day gather momentum on the downside as CEA in an interview remarked of no stimulus package in the offing from the Government. This saw an already weak market gather speed on the downside and break below the crucial level of 10800. Banks, financial services and metals cracked on the downside as foreign selling expanded, however big buying by domestic mutual funds failed to stem the fall as sentiment turned weak.
US indices see small gains as Dow Jones closes up 50 points while technology stocks drag Nasdaq lower. All eyes on Friday’s Federal Reserve testimony at Jackson Hole on outlook on rates. Oil prices remain range-bound while bond yields rise to 1.63%. Globally, outlook on rates sees a decline as nearly 8 countries see negative bond yields, with Japan and EU, set to announce further stimulus in September.
Asian indices saw a quiet start with all eyes on US markets and the course of the Federal Reserve outlook on rates today. Chinese markets have seen volatile movements as the Hong Kong crisis sees no near term end and is damaging economic outlook in China. For today, expect some near term pullback as smart money buys Chinese banks as lower cost of money to see credit expand.