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Key factors that are shaping the market today

Asian stocks edged up on Thursday taking lead from higher closing on Wall Street after the Federal Reserve's latest meeting minutes showed policymakers were in no hurry to add to US borrowing costs.

BT Online   New Delhi     Last Updated: August 18, 2016  | 15:31 IST
Key factors that are shaping the market today
Photo: Reuters

US Federal Reserve is in no hurry to raise interest rates in US. The minutes of Fed's latest policy meeting, which suggested so, soothed investors' nerves across global markets. The minutes came a day after two influential Fed policymakers sounded hawkish on interest rates. While UBS flagged concerns over migration of assets from developed markets to emerging markets, back home, experts believed gold demand will pick up in second half after a tepid first half.

Below is a wrap-up of this and more that you must know as trading begins on Dalal Street:

ALSO READ: Five stocks to bet on post June quarter earnings

Fed split over rate path

The rate-setting Federal Open Market Committee remained divided whether to tighten policy or maintain status quo. According to the minutes from the US central bank's July 26-27 policy meeting, the policymakers agreed that more economic data is needed before raising interest rates, although some see a need to tighten policy soon.
The minutes showed that members of the FOMC were generally upbeat about the US economic outlook and labour market.

"Some ... members anticipated that economic conditions would soon warrant taking another step in removing policy accommodation," the Fed said in the minutes.

Gold demand to pick up in second half

The global economic crisis has driven people to resort to yellow metal aka safe haven. The appetite for gold will pick up in the second half also because festive season is in the offing and salaries of government employees have risen thanks to Pay Commission award.  

High unofficial imports, elevated price, imposition of excise duty and subsequent strike by jewellers had impacted gold demand in the first half.

Global markets enter green terrain

Asian stocks edged up on Thursday taking lead from higher closing on Wall Street after the Federal Reserve's latest meeting minutes showed policymakers were in no hurry to add to US borrowing costs.

UBS sounds caution over emerging markets

Global investment bank UBS does not think the heavy inflows in emerging markets is a report card of their improving fundamentals. Even though emerging-market securities are gaining favour as developed markets get increasingly expensive, fundamentals won't fulfil the hype, said UBS. It warned when growth doesn't follow through, cheap valuations might end up looking expensive very quickly.

Oil prices fall

Oil prices dipped on Thursday as the prospect of record Saudi output weighed on markets and as traders cashed in on profits following an almost uninterrupted price rally this month of nearly 20 per cent. International Brent crude oil futures were trading at $49.67 per barrel, down 18 cents from their last close.

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