Asian stocks were seen trading in the losses and the US equity futures saw a decline as traders and analysts continue to eye further data points from the US, Europe and China to get an idea if the November rally will be sustained or not. Since Asian markets erased gains, the key data points which traders and global experts are eyeing include euro zone inflation numbers, Chinese PMI readings and the US PCE deflator. All these data releases are expected to be released Thursday. Then, Friday, the US, European and Chinese PMI readings will be released. A range of central bank speakers will also present their respective views which should give more idea as to the direction of the movement in interest rates.
Asian markets saw a little direction on Monday after the holiday shortened week in the US post the Thanksgiving session. MSCI gauge of Asian equities withdrew the opening gains of ~0.4%. Elsewhere, the Chinese stocks ended in red, with the Hang Seng China Enterprises Index falling to the tune of ~1.4%. US stock futures saw a decline in Asia after S&P 500 was seen ending the fourth week of gains on Friday, with VIX — the Street’s “fear gauge” and which measures the volatility in the equities — declined to lowest levels since the month of January 2020.
Despite of the fact that Asian markets erased gains, in this week, the investors are expected to remain busy in looking closely at Chinese activity data which should help gauge health of China, the second largest economy of the world. Traders should analyse shadow banking stocks post Chinese authorities launching criminal investigations in fund management business of Zhongzhi Enterprise Group Co.
Coming to Indian stock markets, the foreign portfolio investors (FPIs) gave up their bearish stance on Indian stocks during the month of November as these investors made investment of INR378 crore due to the significant decline in the US treasury bond yields. This momentum was seen after FPIs sold Indian equities to the tune of ~INR24,548 crore in October month and ~INR14,767 crore in September, as per the data released by depositories.
Experts believe that the improvement in the risk appetite in emerging markets along with decline in falling risk-free yields in the US should result in more FPI flows in India. As per the data from the depositories, the FPIs made net investment of INR378.2 crore in Indian equities in November (till 24 November).