02 February 2022
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- India goes on a spending spree to boost growth, stokes concern over fiscal deficit
- Dollar restrained by risk revival, spread of rate speculation
- Japan’s Nikkei 225 rises nearly 2%
- Oil little changed despite talk of possible OPEC+ supply boost
India’s government will step up spending to 39.45 trillion rupees ($529.7 billion) in the coming fiscal year to build public infrastructure and drive economic growth, it said on Tuesday, but it involves a wider fiscal deficit than targeted and record borrowing.
Finance Minister Nirmala Sitharaman, presenting the annual budget to parliament, said total government spending in the 2022/23 fiscal year beginning in April will be 4.6% more than the current year.
Trillions of rupees will be allocated to expressways, affordable housing and solar manufacturing to put growth on a firmer footing, she said.
Growth is estimated to be 9.2% for 2021/2022, coming off a low base and slowing to 8 to 8.5% in the coming fiscal year, still the fastest among the world’s major economies.
The dollar was carrying a couple of bruises on Wednesday as Federal Reserve officials played down the chance of a half point rate hike in March and a rally in global equity markets tarnished some of its safe haven allure.
The euro looked steadier at $1.1270 , having risen 0.3% overnight and further away from last week’s 20-month trough at $1.1122. The dollar was back at 114.70 yen , after dropping 0.4% overnight and away from last week’s top at 115.68 which now marks major resistance. Still, it remains comfortably above key support around 113.47.
Shares in Asia-Pacific rose in Wednesday trade, with multiple major markets in Asia remaining closed for the Lunar New Year holidays.
The Nikkei 225 gained 1.73% in morning trade while the Topix index advanced 1.97%. In Australia, the S&P/ASX 200 climbed 1.1%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.29% higher. Markets in mainland China, Hong Kong, Singapore and South Korea are closed on Wednesday for the Lunar New Year holidays.
Overnight stateside, shares on Wall Street rose for a third day. The Dow Jones Industrial Average jumped 273.38 points to 35,405.24 while the S&P 500 climbed 0.69% to 4,546.54. The Nasdaq Composite edged 0.75% higher to 14,346.
Oil prices ended little changed on Tuesday, as geopolitical tensions and tight global supplies supported the market even as some speculated that OPEC+ might boost supplies more than expected.
The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, has been expected to decide at a monthly meeting on Wednesday tokeep gradually increasing production. Brent crude settled down 10 cents, or 0.1%, at $$89.16 a barrel while U.S. West Texas Intermediate crude rose 5 cents to $88.20.
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