In the fortnight from 16th to 28th February 2019, major world markets gained U.S.-China talks were at the centre of market movements.
U.S. investors were bolstered after U.S. President decided to postpone a planned increase in U.S. tariffs on Chinese imports. Nonetheless, subsequent contrarian approach of the U.S. trade officials capped the gains.
European markets largely remained positive on optimism over the talks between the U.S. and Chinese officials. Meanwhile, market participants closely followed developments over Brexit. Some of the weak economic data also kept investors worried.
Asian markets largely reflected gains in global peers. Buying interest got support from the minutes of the U.S. Federal Reserve’s latest meeting. However weak Chinese economic data raised fears of a slowdown in growth.
The Indian equity markets felt the pressure from tensions with its neighbouring country. Once the tensions eased, markets were able to recover the losses. The Reserve Bank of India (RBI) transferring an interim surplus to the Government also supported sentiment.
The banking and financial sector grew with Finance ministry expecting bad loan recoveries to touch Rs. 1.80 lakh crore in FY19. However, growth concerns raised by the RBI’s Monetary Policy Committee (MPC) capped the gains.
The oil and gas sector witnessed rise during the two-week period following decline in international crude oil prices.
The rupee gained against the U.S. dollar as the trade issues between U.S. and China seemed to come closer to a resolution. Month-end dollar demand from importers capped the gains.
Source: MFI Explorer
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