Gold and silver: The rebound has run into resistance
Our base case remains that safe-haven demand should fade further, assuming that the US economy does not slip into recession. The bull case remains a recession as it should lead to a significant pick-up in safe-haven demand. Meanwhile, silver should continue to move in gold’s slipstream.
Banks rush to raise funds via CDs amid credit demand
Bank credit expanded 14.5% year-on-year to Rs 123.7 lakh crore as on July 29 this year. By contrast, deposit mobilisation climbed 9.1% to Rs 169.7 lakh crore. Banks are required to mandatorily set aside a part of deposits to meet prudential norms.
5 world market themes for the week ahead
Business activity indicators in the euro zone and an inflation gauge in the United States are also on tap, while rate cuts may be looming in China.
RBI gets more aggressive on forwards to save rupee
The Reserve Bank sold a net of $3.7 billion in the spot market and $18 billion in the forward market in June according to the latest data released by the Reserve Bank of India.
Wall Street ends down as yields rise; indexes post weekly losses
After notching its worst first half since 1970, the S&P 500 has bounced some 16% from its mid-June low, fueled by stronger-than-expected corporate earnings and hopes the economy can avoid a recession even as the Fed hikes rates.
Prices unacceptably, uncomfortably high, MPC noted while raising rate
External MPC member Jayanth R Varma dissented on the resolution that said the panel would remain focused on withdrawal of accommodation while seeking to achieve simultaneous goals of restraining inflation and underpinning growth.