Volatile Markets Ahead: Fed Speech, US-Iran Tensions, and Oil Prices in Focus
India's benchmark indices are expected to remain volatile next week as investors track several key events. The US Federal Reserve Chairman Kevin Warsh is set to deliver a keynote speech at the annual Jackson Hole Economic Policy Symposium in Wyoming on August 28, which could influence investor sentiment.
The ongoing tensions between the US and Iran will also be closely watched, with Washington planning to impose new sanctions that could weaken Iran's economy and affect its key trading partners. Although hostilities have eased since the US and Israel launched airstrikes on February 28, there has been limited clarity on a durable path towards peace negotiations.
Crude oil prices are another major factor, as they ended higher on Friday after US President Donald Trump threatened economic sanctions against countries trading with Iran. This could lead to disruptions in global crude supplies and further put pressure on India's inflation, rupee, corporate margins, and current account.