Markets Ahead: Trump Tariffs Along With Interest Rate Decision From Central Banks To Influence Sentiments, Say Analysts

The upcoming week is also set to see the release of major macroeconomic data such as the WPI inflation data for February, retail sales data for China and the US.

Last week, the analysts noted that escalation in global trade tension and the fear of a US recession impacted markets and weighed down benchmark indices.

Source : ABPLIVE AI

Equity markets in the coming week will be influenced by the US Fed’s interest rate decision, experts said. The analysts pointed out that investors will be on the lookout for global trends in addition to developments around tariff conflicts across the globe.

The upcoming week is also set to see the release of major macroeconomic data such as the WPI inflation data for February. Additionally, market players will also be observing the trading activity of foreign investors in the week to understand the movement of benchmark indices, reported PTI.

Elaborating on the outlook for the markets, Vinod Nair, Head of Research, Geojit Financial Services, said that the momentum in the domestic market will continue to be influenced by the consistent uncertainties around global trade and worries of a recession in the US. 

However, the expert added, “The moderation in valuations following recent corrections, along with supportive factors such as falling crude oil prices, an easing dollar index, and expectations of a rebound in domestic earnings in the coming quarters, may limit the volatility and is expected to contribute to stability amid prevailing trade uncertainties.”

Global Economic Figures Expected

China is also scheduled to release its retail sales growth data and industrial production figure this week. This will help get a clearer picture of the Chinese economy growth outlook, Nair pointed out.

Other macroeconomic data to be observed by the investors includes the retail sales and production numbers from the US, along with interest rate decision from the Bank of England (BoE). 

Markets Last Week

Last week, the analysts noted that escalation in global trade tension and the fear of a US recession impacted markets and weighed down benchmark indices.

While the BSE Sensex plunged more than 500 points last week, the NSE Nifty50 crashed over 150 points, driven by the volatility related to US trade policies.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services, said that this week market is expected to remain range-bound and exhibit some volatility, driven by global trends and the latest developments in the US tariff policies.