Global equity markets were mixed during the fortnight ended March 29, 2019. U.S. and Asian markets gained while the European counterparts were subdued.

International Market

U.S. markets gained as investors continued to track the development of the next round of U.S. - China trade talks. Sentiment was strengthened by U.S. Federal Reserve’s decision to maintain interest rates at the same level.

European markets suffered after the European Central Bank revised its euro zone growth forecast downwards. Weak economic data and Brexit uncertainties added to investor woes.

Asian markets mostly remained positive. Chinese Government pledging full support for the slowing economy added to the gains. However, the upside was limited by inversion in U.S. yields and Brexit uncertainties.

Indian Market

Indian equity markets closed on a positive note during the period. Growing optimism that the Reserve Bank of India (RBI) may cut rates in the first bi-monthly monetary policy meeting of FY20 improved market sentiment.

Banking & financial services sector got support after the Reserve Bank of India (RBI) reportedly injected liquidity into the system.

The consumer sector rose too on optimism of greater spending in the future. The auto sector remained weak as output is being cut because of slowing demand.

Rupee increased against the U.S. dollar on the back of strength in the domestic market, decline in trade deficit and weak U.S. economic growth.

Source: MFI Explorer

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