#GDPgrowth

[cambcurrencies]

UK GDP Growth Sparks Little GBP Movement

Main Market Movers Today UK GDP Data: The UK has released its GDP figure for May, posting 0.2% growth month on month. This modest rise shows that UK economic activity is picking up but is recovering really slow. The backdrop of positive GDP data lent the British pound little support, though ongoing concerns of the broader economic outlook bridle these gains​. US CPI Data: The US will later…

[cmanateesto]

Think of the hedgefunds...

[quibblefrost]

FII Exodus: Unpacking the $2 Billion Sell-off in Indian Equities

Date: January 10, 2025

On January 10, the Indian stock market exhibited a mixed trajectory. The BSE Sensex opened with an uptick of approximately 200 points, reaching 77,680, while the NSE Nifty advanced by 25.40 points to 23,551 in early trading. However, this initial optimism was short-lived. Concerns over corporate earnings and economic growth led to a reversal, with both indices closing in the red. The Nifty 50 and BSE Sensex declined by 0.62% and 0.55%, respectively. (Source)

Key Factors Driving the FII Sell-off

Weakening Corporate Earnings: Recent financial reports have highlighted that corporate earnings are falling short of market expectations, diminishing investor confidence. (Source)

Sluggish GDP Growth: Indicators of slowing GDP growth have raised concerns about India's economic trajectory, making the market less appealing to foreign investors. (Source)

Depreciating Rupee: The Indian rupee has depreciated to record lows against the U.S. dollar, closing at 85.8275 on January 6, 2025. (Source)

Rising U.S. Bond Yields: Elevated yields on U.S. Treasury bonds offer more attractive, risk-free returns, incentivizing FIIs to redirect investments from emerging markets like India to the U.S.

Tariff Concerns: Uncertainties surrounding global trade policies and potential tariff implementations have created an unpredictable environment, discouraging foreign investment. (Source)

Attractive U.S. Market: The U.S. stock market has presented compelling investment opportunities, drawing capital away from Indian equities.

Impact on the Indian Stock Market

The substantial FII outflows have exerted downward pressure on Indian stock indices, contributing to increased volatility and a bearish market sentiment. Sectors heavily reliant on foreign investment, such as technology and financial services, have experienced notable declines. Additionally, the persistent selling has strained market liquidity, potentially affecting the execution of large trades and overall market stability. (Source)

Political and Other Influencing Factors

Political stability is crucial in maintaining investor confidence. Any signs of political uncertainty or policy inconsistency can exacerbate market volatility. Furthermore, global economic conditions, such as fluctuations in oil prices and geopolitical tensions, also impact investor sentiment and capital flows. (Source)

Sources:

Reuters

Economic Times

Moneycontrol

[timebharat]

India’s Central Bank Governor Sees Better 2025 Growth Prospects

India’s Central Bank Governor, Shaktikanta Das, has expressed optimism about the country’s economic prospects for 2025. In his latest statement, he indicated that the country is likely to experience better growth in the coming year. His comments come amid challenges in the global economy, including inflationary pressures and geopolitical uncertainties.

Das emphasized that India’s strong domestic demand, coupled with structural reforms and robust financial systems, will contribute to a positive growth trajectory in 2025. He also pointed to the resilience of the Indian economy, noting that despite external challenges, India’s economic fundamentals remain strong. Furthermore, the Reserve Bank of India (RBI) is expected to continue its policy efforts to support economic stability and growth.

[iismmumbai]

India’s sports market, one of the fastest-rising industries, is growing at twice the speed of the national GDP.

Will it reach $130B by 2030? Tell us in the comments below.

[kamini-vidrawan-ras-tablet]

Strong Economic Indicators Drive Market Confidence

In 2024, strong economic indicators are playing a pivotal role in driving stock market optimism. Despite global challenges, the US economy has shown resilience, and key metrics suggest sustained growth, fostering confidence among investors. These positive signals are helping to push stock prices higher, and analysts are increasingly optimistic about the year ahead.

Key Economic Indicators Fueling Market Confidence

Robust GDP Growth: The US economy continues to outperform expectations with strong GDP growth. The economy has shown signs of resilience despite global uncertainties, and analysts predict steady growth in 2024. The expansion in sectors like technology, healthcare, and consumer goods is helping support this positive economic trend. Investors are buoyed by the prospects of continued growth, driving stock market performance.

Low Unemployment Rate: The unemployment rate remains at historically low levels, reflecting a healthy labor market. As businesses continue to hire and wages rise, consumer confidence and spending are expected to remain strong. This not only supports domestic consumption but also boosts investor sentiment, as higher employment levels typically correlate with increased economic activity and higher corporate profits.

Strong Corporate Earnings: Companies across various sectors are reporting solid earnings growth, driven by both strong consumer demand and effective cost management. Technology, financials, and consumer goods have particularly benefitted from favorable economic conditions. These positive earnings reports are reinforcing investor confidence and supporting stock market gains, as companies continue to exceed analysts' expectations.

Inflation Under Control: While inflationary pressures have moderated, the Federal Reserve's actions to curb inflation through strategic interest rate adjustments have proven successful. Stable inflation is a crucial factor for economic stability, as it ensures predictable pricing and a favorable environment for investment and growth.

Global Economic Stability: Despite geopolitical challenges, the global economy has shown signs of stability. This is encouraging investors, as it indicates a favorable environment for multinational corporations to thrive. Additionally, the gradual recovery of supply chains and the normalization of trade relations are contributing to a more stable global economic outlook, further boosting market sentiment.Do you Know KVR?

Outlook for 2024 and Beyond

With these positive economic indicators, investors are hopeful that the upward trend in the stock market will continue throughout 2024. However, while strong economic data is encouraging, global risks, such as geopolitical tensions and potential policy shifts, still loom. Nonetheless, the solid foundation provided by strong GDP growth, low unemployment, and corporate earnings suggests that the market is positioned for a prosperous year.

As we move forward, all eyes will be on how these economic trends evolve and whether they can be sustained in the face of potential challenges. If these indicators continue to show strength, the market is likely to remain optimistic, setting the stage for further growth.

For a more in-depth analysis of the current economic trends and how they are impacting market confidence, stay tuned to ongoing reports from financial experts and market analysts.

[enterprisewired]

China Lowers Lending Rates Amid Economic Challenges

Source: economictimes.indiatimes.com

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Beijing takes action to stimulate demand and boost growth

Major Rate Cuts by PBOC

On Monday, China’s central bank, the People’s Bank of China (PBOC), announced a reduction in its main benchmark lending rates by 25 basis points during the monthly fixing. The one-year loan prime rate (LPR), which influences corporate and most household loans, was lowered to 3.1%, while the five-year LPR, the benchmark for mortgage rates, was cut to 3.6%. These changes signal China’s continued efforts to stimulate its sluggish economy through monetary policy adjustments.

This move had been widely anticipated after PBOC Governor Pan Gongsheng hinted at a possible rate reduction during a recent forum in Beijing. He noted that the central bank was likely to lower the loan prime rates by 20 to 25 basis points. This reduction follows similar cuts in previous months and is part of a broader strategy to address ongoing economic challenges, including a persistent property crisis and weak consumer confidence.

Analysis: Stimulus and Economic Strategy

The PBOC’s decision to cut Lending rates is part of a larger monetary stimulus plan aimed at stabilizing China’s economy. Along with the LPR cuts, Governor Pan also mentioned the potential for further reductions in the reserve requirement ratio (RRR) by 25 to 50 basis points by the end of the year, depending on liquidity needs. Additional measures, including a 20-basis-point cut to the seven-day reverse repurchase rate and a 30-basis-point reduction in the medium-term lending facility rate, were highlighted during his speech.

While the rate cuts are a positive step, experts believe more substantial measures are needed. Shane Oliver, chief economist at AMP, emphasized that lowering the cost of borrowing alone might not be enough to stimulate significant growth. He stressed that China’s real challenge lies in a lack of demand, calling for more aggressive fiscal stimulus to complement the monetary adjustments. Zhiwei Zhang, president of Pinpoint Asset Management, echoed this sentiment, arguing that despite the recent cuts, China’s real interest Lending rates remain too high. He expects additional rate reductions in 2024 as the U.S. Federal Reserve begins to lower its own rates.

Context: China’s Economic Landscape

China’s latest move to cut lending rates comes after a series of measures taken by the PBOC to support its economy, which has been grappling with multiple crises, including a prolonged slump in the property market. Last month, the central bank lowered the RRR by 50 basis points, releasing liquidity into the banking system to help ease financial pressures. These efforts are aimed at boosting consumer spending and investment, as the world’s second-largest economy struggles to regain its footing.

Recent economic data provides a mixed picture. While China’s third-quarter GDP growth of 4.6% year-on-year was slightly better than expected, the overall sentiment remains cautious. Retail sales and industrial production figures for September also exceeded forecasts, offering some hope. However, experts believe that without stronger demand and more comprehensive fiscal support, China’s economic recovery may remain slow.

The PBOC’s recent actions, including the latest rate cuts, reflect its commitment to stabilizing the economy. However, the road to recovery remains uncertain, with many calling for a balanced approach that includes both monetary and fiscal policy initiatives to address the underlying structural issues.

[hybrid-minds]

India’s Digital Economy: Projected to Soar to 20% of GDP by 2026

India's digital economy is on a remarkable trajectory, with projections indicating it could contribute as much as 20% to the country's GDP by 2026. This article explores the factors driving this growth, including technological advancements, government initiatives, and the increasing adoption of digital services across various sectors. Discover how India is positioning itself as a global digital leader and the implications of this economic shift for businesses and consumers alike.

Read the full article here. Join the conversation about India’s digital transformation!

[letsdiskuss-blog]

Prime Minister Modi Unveils Major Economic Milestones for India

Prime Minister Narendra Modi’s Bi-Weekly Bharat newsletter highlights India’s economic achievements. Key points include a record market capitalization of $5.5 trillion, 1.4 lakh recognized startups creating 15.5 lakh jobs, and a 35% increase in employment to 64.33 crore over six years. The manufacturing sector added 85 lakh jobs from 2017-2023. Exports grew by 5.5% to $21.2 billion, with projections to surpass $800 billion this fiscal year. Outward FDI commitments rose to $2.14 billion in June 2024, up from $1.14 billion in June 2023. These figures showcase growth across various sectors, including technology and manufacturing.

[cambcurrencies]

US PCE, GDP & Durable Goods Orders to Drive Markets Today

Market Comment – Tuesday, 27 November 2024 Markets are digesting mixed data this morning, with releases from Australia, Germany, and the US. Australia’s Monthly CPI Indicator met expectations, while Germany’s GfK Consumer Confidence showed a slight improvement. Later today, US data will dominate attention with Core PCE Price Index, Durable Goods Orders, GDP Growth Rate (Q3, second estimate), and…

[cmanateesto]

[newshawkers]

भारत ने छोड़ा चीन को पीछे|

[ibeforg]

Unlocking India's Economic Potential: Strategies for Growth

Dive into India's economic landscape with IBEF's comprehensive insights on economy of India, Indian economy growth rate, Indian GDP, India's economic growth, and India economic structure. Explore strategic pathways to unleash India's full economic potential and understand key factors driving growth. Discover how India is shaping its economic future amidst global dynamics. For more information Follow the link: https://www.ibef.org/economy/indian-economy-overview

[usnewsper-politics]

China's Rise: The Race for Global Power and What It Means for the World #agingpopulation #artificialintelligence #BeltandRoadInitiative #Chinasrise #dominantworldpower #electricvehicles #environmentaldegradation #gdpgrowth #geopoliticallandscape. #highspeedrailways #hypersonicmissiles #internationalcommunity #militarycapabilities #renewableenergy #risingdebtlevels #robotics #solarpanels #southchinasea #stealthfighters #technology #tensionsbetweenChinaandtheUS #trade

[newswatchindia]

Tata Group Total Valuation vs Pakistan GDP: Tata showed its worth to Pakistan which attacked Taj Hotel

Tata Group Total Valuation vs Pakistan GDP: Pakistan,which nurtures terrorists, is being hit from all sides. Islamabad, which had been making waves by carrying out terrorist attacks in India, is getting blow after blow. The situation is such that the neighbor has become poor.