Wall Street has digested Yellen’s hawkishness in no time even as Goldman and Pimco fight over the possible date of a rate hike. Back home, chances of an interest rate cut by the Reserve Bank of India are diminishing further. And in the corporate world, Apple is gearing up for iPhone 7 launch.
All this and more in today’s wrapup of all the important news, views and cues that may have changed your market while you were sleeping.
Wall Street sets sights on a record: Despite the glaring signal from the US Federal Reserve that it may hike Fed rates anytime later this year, the Wall Street raced closer to a record high in overnight trade. Helped by a buying frenzy in financial stocks, the Dow Jones surged 107 points while the S&P500 gained 0.52 per cent. The mood, though, wasn’t that jollyBSE 1.43 % in Europe, as stocks slumped around half a per cent. Going by the Nifty50 futures on the Singapore Stock Exchange, the optimism of Wall Street may get rubbed off on Dalal Street.
Consumers make case for US economy: Consumers in the United States are making the US Federal Reserve’s case for a rate hike stronger and smarter. US consumer spending rose for the fourth consecutive month in July, helped by a 0.4 per cent rise in inflation-adjusted income and a 5.7 per cent savings rate. This should further bolster the Fed’s case for a rate hike this year, but more importantly assure investors that the US economy is on the right path.
Apple sends invites for event: The biggest tech event of the year is finally here. Apple, the biggest company in the world by market value, on Monday sent out invites for September 7 event, which could possibly see the launch of Apple 7 and 7S. The tech giant will be hoping that its latest offering would revive dampening sales and help it make further inroads into markets like India.
Chances of rate cut slim: In its latest annual report, the Reserve Bank of India stated that inflation was running at the upper end of its forecast and that further rate cuts could happen only if inflation falls in the near future. Governor Raghuram Rajan suggested that the need for keeping real rates high for savers and borrowing costs low for borrowers meant only a fall in inflation could strengthen the case for a rate cut.
D-Street is turning bullish on Infosys: After bad June quarter numbers and Brexit worry, which saw Infosys shares crash 10 per cent, Dalal Street seems to believe the good times are here to stay for the Bangalore-based company. A number of analysts have come out with buy ratings on the stock, with some suggesting further upside in the stock in the near future, according to an ET report. The message is clear: keep calm and keep the faith in Vishal Sikka.