AUS
NZ
UK
CA
USA
IND
Summary
- Global markets are keeping a close watch on India’s rising infections
- Australia, US, German macro numbers would be the key drivers this week
- Australia’s RBA is likely to keep its monetary policy unchanged
The rally in the global equity markets has flattened in last few months. Mixed macro numbers numbers and India’s burgeoning COVID-19 numbers are holding the rally. Last week as well, the global equity markets were flat, primarily because of the rising COVID-19 infections.
Going forth, here are some events this week that are expected to have a significant impact on global equities:
German Retail Sales: The German Statistisches Bundesamt Deutschland would be releasing its retail sales numbers – a measure of changes in sales of the German retail sector – for the month of March on Monday. For February 2021, the turnover in retail declined by a sizeable 9.0% in real terms and by 7.7% in nominal value, on a year-on-year basis. Analysts expect German retail sales to further decline by about 3% in March.
US Manufacturing Numbers: The Institute for Supply Management (ISM) will come out with Manufacturing Index for the month of April, showing the trends in the US’ manufacturing sector. Last month’s ISM Manufacturing PMI stood at 64.7 and is expected to rise above 65 for April. Any PMI number above 50 is considered as bullish, and below 50 as bearish.
Australian interest rate decision: In Australia, the Reserve Bank of Australia would be taking a call on the interest rates in the country through its monetary policy review on Tuesday. The markets expect the Australian central bank to keep interest rates unchanged at near-zero level (10 basis points).
COVID-19 infections: The rising COVID-19 infections in India has almost sabotaged one-sixth of world’s population that resides in the country. India – being a huge market and world’s sixth largest economy – is a key player in the economic recovery of the world. Moreover, the country is long seen as a favourite destination of foreign funds; any further spike might spook them out of their wits.
