After the US Federal reserve's November 2022 policy meet, its widely anticipated interest rate hikes and its press conference led to visbly more hawkish views and resulted in a sharp downturn of global asset prices. Latest data on US inflation however seem to point to a gradual cool off and acted as a breather to asset prices. But is it too early to celebrate?
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Across asset prices, the impact of liquidity withdrawal is becoming increasingly evident, particularly on crypto currency assets.
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China has also been on the tip of everyone's tongue - will it reopen or will its Zero Covid Policy remain and what will be the resultant impact on commodity prices and the USDÂ index?
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In India, equity markets continue to outperform global peers. India corporate earnings data released for 2QFY'23 have seen the Nifty 50 index companies register sales and PAT growth at 29% and 9% respectively. The RBI is likely to hike rates again the Dec'22 policy meet and in 2023 further monitor factors factors like growth inflation trade-offs, policy tightening by FED and geopolitical risks before hiking/cutting rates.
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Read more on our team's analysis of this month's key narratives and their thoughts on what investors can expect.
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