WS #15421
The Reserve Bank of India surprised markets with a 25 basis point rate hike and an upward revision to its FY27 GDP growth forecast, signaling that central banks are prioritizing inflation control over growth support. This move has pressured Indian equities and reinforced the global narrative of persistent inflationary pressures, limiting the scope for coordinated monetary easing. European equities are facing headwinds from a combination of rising US bond yields and elevated energy costs. The FTSE 100 and DAX are retreating as investors rotate out of cyclical and consumer discretionary stocks. The pressure is particularly acute in sectors sensitive to input costs, with financials and industrials leading the decline.
RBI Rate Hike & Liquidity
The Reserve Bank of India surprised markets with a 25 basis point rate hike and an upward revision to its FY27 GDP growth forecast, signaling that central banks are prioritizing inflation control over growth support. This move has pressured Indian equities and reinforced the global narrative of persistent inflationary pressures, limiting the scope for coordinated monetary easing.
European equities are facing headwinds from a combination of rising US bond yields and elevated energy costs. The FTSE 100 and DAX are retreating as investors rotate out of cyclical and consumer discretionary stocks. The pressure is particularly acute in sectors sensitive to input costs, with financials and industrials leading the decline.