Dollar stabilises, Dow struggles
The sell-off in global equities can continue while the greenback can be range-bound
Equity markets across the globe came under pressure last week. The major global indices witnessed a strong sell-off, indicating the end of the strong rally that has been in place since March last year and also signalling the start of a correction.
Indices such as the Dow Jones Industrial Average, the Nikkei 225 and the Shanghai Composite fell over 3 per cent last week.
On the domestic front, the Sensex and the Nifty 50 were beaten down badly and were down over 5 per cent last week.
Stimulus hope in the US keeps risk appetite high
Equities surge, US Treasury yields lend support to the dollar
The new year began with a sharp sell-off in equities. The Dow Jones Industrial Average tumbled over 1 per cent on Monday. But that was short-lived as the index recovered all the loss thereafter and surged to record highs.
The Democrats winning the run-off elections and gaining control of the US Senate has increased the prospects of getting more stimulus from the new government that will take over later this month. This has overshadowed the riots in Washington to disrupt the election results.