Ipek Ozkardeskaya
Swissquote Bank Ltd
Shocker! The exit polls were completely wrong in predicting the outcome of the Indian election. Not only that Narendra Modi’s BJP couldn’t secure a landslide victory in the latest elections – as it was suggested by Monday’s polls, but it couldn’t even win enough seats to secure a majority in the parliament. The Nifty 50 fell nearly 6% from a record and remains under pressure this morning while the Indian rupee depreciated as fast as it had jumped on Monday.
In the US, the JOLTS data from the US showed that job openings in the US fell to around 8 mio jobs in April. The softer-than-expected figure boosted appetite in US treasuries and increased the probability of seeing the first Federal Reserve (Fed) cut in September. US treasuries rallies, US crude consolidated near 4-month lows, the S&P500 eked out small gains, Nvidia hit a record.
Today, the ADP report is expected to print around 173K new private job additions to the US economy last month, and the Bank of Canada (BoC) is expected to announce a 25bp rate cut.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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Services inflation is stuck at 5% and will stay around there for the next few months. But further progress, helped by more benign annual rises in index-linked prices in April, should see ‘core services’ inflation fall materially in the spring.
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