You can see from foreign flows perspective that rebound in China is detracting from some of the investment in India. I do not think it changes the longer-term trends, but we are in one of those holding patterns similar to the fourth quarter of 2023.
Though crude prices eased a bit on Monday, Brent and WTI contracts still remain elevated above $90 per barrel. On the other hand, US 10-year yield hovers near the 5 percent mark, making the case for equities weaker
“If you look at the 20-day moving average, it has been a great card for that accelerated trend in the midcap index. By mid September, we started to test that 20-day moving average again. Two weeks ago, we broke below it and now we are seeing some choppy volatility around it.”
As BoJ’s announcement of loosening grip on yields pulls down the Yen’s gains, market expert Balanco sees a correction happening across risk assets if the Yen goes below key support levels.