The Asian Development Bank said on Wednesday that India's stronger-than-expected fiscal condition could provide an additional boost to economy, while retaining the GDP growth prediction for the current fiscal year 2024-25 at 7%. This, nevertheless, must be "weighed against downside risks" caused by weather disasters and geopolitical shocks, according to the bank’s research. According to the July Outlook, India's industrial sector is expected to grow rapidly, fueled by manufacturing and high demand in building, particularly in housing. Agriculture is likely to recover with projections of an above-normal monsoon, while investment demand remains solid, led by public expenditure, it added.
Top 3 Leads Today
- US considers tougher trade rules in China chip crackdown.
- EU's carbon tax mechanism expected to cost India 0.05% of GDP: Report.
- India's food subsidies to cost 11% more than initial plan, sources say.
Indian Markets
- Indian financial markets were closed on Wednesday for Muharram.
International Markets
- US Stocks: On Wednesday, the S&P 500 and Nasdaq indices fell as semiconductor companies fell over concerns about US-China trade wars, escalating the rotation out of mega cap tech stocks. Microchip stocks fell 6.8% after the Biden administration may consider harsh trade penalties against China, the Philadelphia SE Semiconductor index's greatest one-day decline since March 2020. Despite behind the other two indices this year, the Dow Jones Industrial Average posted its third straight record closing high. The Dow index grew 0.59%, to 41,198.08, while the S&P 500 fell 1.39%, to 5,588.27 and the Nasdaq was down 2.77%, to 17,996.93.
- Treasuries: Yields fell as top Federal Reserve officials claimed they are 'closer' to cutting interest rates, with the 10-year treasury yield reaching a four-month low on Wednesday. Fed Governor Christopher Waller and New York Fed President John Williams both emphasized the narrowing horizon toward looser monetary policy. Meanwhile, Richmond Fed President Thomas Barkin said he was "very encouraged" about inflation decreases broadening. "I would like to see that continue," he stated to a business group in Maryland.
- Currency: The dollar fell to a four-month low as Federal Reserve officials hinted the central bank was coming closer to reducing interest rates. The yen gained substantially, possibly because of the latest of Bank of Japan's measures to strengthen the long-depressed currency. The dollar index, fell 0.43% against major basket of currencies to close at 103.76 after plunging as low as 103.64 earlier in the day.
Events This Week
July 18, Thursday:
- US Unemployment Insurance Weekly Claims Report for Jul 13 week.
- US Weekly Export Sales.
July 19, Friday:
- US State Employment and Unemployment for June.
- India FX Reserves for Jul 8 week.
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