Fed Rate Decision, Inflation Data, and Oil Prices Set to Drive Global Markets
The upcoming week will be crucial for global markets as several key events are set to unfold. The US Federal Reserve's interest rate decision, which will be announced on September 15-16 during its FOMC meeting, is expected to have a significant impact on stock market movements. According to Ajit Mishra, SVP of Research at Religare Broking, 'Globally, developments in the US-Iran conflict and movement in Brent crude will remain critical market drivers.'
The Federal Reserve's decision will be closely watched by investors as it may signal a shift in interest rates. This could have far-reaching implications for global bond yields and the dollar, particularly if the Fed adopts a more hawkish tone.
Domestically, India's inflation data, which includes WPI and CPI readings, will also be under scrutiny. August's WPI and CPI inflation data showed headline CPI rising 0.4% month-on-month and holding at 3.4% annually, while core inflation increased 0.3% from the previous month but eased to 2.4% year-on-year.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, warns that 'crude oil remains the most immediate external risk' for India. A renewed rise in crude prices, especially if disruptions to Middle East oil flows intensify, could add to inflationary pressures and weigh on the rupee.