US markets recover losses as inflation data comes in line with expectations; GIFT Nifty up

S&P 500 and Nasdaq gained on March 12 as the US inflation data came in line with the market expectations. The S&P 500 traded 1 percent higher at 5,168.42, while the Nasdaq Composite was up 1.32 percent at 16,230.50. The Dow Jones Industrial Average also traded 0.62 percent higher at 39,011.03.

The US Consumer Price Index (CPI) inflation in February was recorded at 3.2 percent over the previous year. These high CPI figures prompted Fed official towards a more cautious approach to easing policy. However, Jerome Powell’s testimony, which was delivered earlier this month, validated the investors’ expectations of rate cuts coming later in 2024. On March 11, President Joe Biden pitched a $7.3 trillion fiscal 2025 budget proposal offering more services and tax breaks to the middle class.

The GIFT Nifty also traded 0.14 percent higher at 22,470.00 at 9 pm IST.

The European markets recovered from the losses of the previous session and moved higher. The FTSE traded 1.09 percent higher at 7,752.52 with UK employment dipping 0.1 percent on the quarter.

CNBC reported the chief UK economist at Capital Economics, Paul Dales stating that “The easing in wage growth in January is probably still a bit too slow for the Bank of England’s liking. But there are encouraging signs that a more marked slowdown is just around the corner and that an interest rate cut in June is possible”. The CAC also traded in the green, up 0.54 percent at 8,063.25 and the DAX traded 0.73 percent higher at 17,876.31.

Earlier during the day, the Japanese Nikkei ended flat-to-negative at 38,797.51. Several technical stocks pulled the Hang Seng index into a bullish run, as the index ended 3.05 percent higher at 17,093.50. The Indian indices also ended positive, the Nifty traded flat-to-positive at 22,335.70 and the Sensex was up 0.22 percent at 73,667.96.

DIIs net purchased Rs 2,358.18 crore and FIIs/FPIs net bought Rs 73.12 crore.

Crude recovered from previous losses and ended 0.86 percent higher at 78.60. Brent was also up 0.62 percent at 82.72.