The health of the U.S. consumer moves into the spotlight next week, with investors watching corporate earnings reports and retail sales data for further confirmation of the economic resilience that has boosted equity markets this month.
As earnings season kicks off, stocks are on a roll. The benchmark S&P 500 is set to post its fifth straight weekly gain and is hovering near a fresh record high after rising over 21% this year.
On the global front, US markets remain resilient, continuing their upward trend despite mixed cues. However, this positivity has yet to spill over into Indian markets. Meanwhile, anticipation of more stimulus measures from China may continue to support the demand for metal stocks.
The strength of China’s market has been a key factor in FII selling in India. Currently, we are negatively correlated with Chinese and Hong Kong markets. Over the weekend, the Chinese Ministry of Finance held a meeting where the market anticipates guidance on future stimulus plans. A positive outcome from China could significantly impact our market, while any disappointment may provide a near-term boost for Indian equities.