Market Bizzz

​​​​​​​The Fed is likely to raise U.S. borrowing costs faster and further than previously expected after the inflation data, with Nomura’s economists saying they now believe a 100 basis-point rate hike is the most likely outcome at the September meet. Even though gold is seen as a hedge against inflation, higher interest rates increase the opportunity cost of holding the bullion while boosts the dollar, in which the precious metal is priced.

Oil prices were also supported by reports that the U.S. Biden administration was considering refilling its strategic oil reserve, as well as lower market expectations for a revival of the West’s 2015 nuclear deal with Iran, said ANZ Research analysts in a note.

The dollar index, which measures the currency against six major peers including the yen, euro and sterling, was little changed at 109.750, after surging 1.44% overnight, its biggest one-day percentage gain since March 2020.

Interest rate futures imply a 90% chance that the Federal Reserve lifts its benchmark interest rate by 75 basis points at next week’s policy meeting – a position that is perhaps most vulnerable to a downside CPI surprise.

UK-based investment company Abrdn is planning to sell up to 4.3 crore sales or 2 per cent of HDFC Life Insurance player outstanding shares through a block deal to raise over Rs 2,425 crore.

U.S. inflation data is due at 1230 GMT and the consensus is for the core inflation rate last month to have risen 0.3% month-on-month, the same as in July. Recent dollar gains have slowed on market expectations that peaking inflation will mean less aggressive interest rate hikes from the Federal Reserve.

Billionaire Mukesh Ambani’s Reliance Industries has acquired polyester chips and yarn manufacturer Shubhalakshmi Polyesters Ltd for Rs 1,592 crore.