The freshly-minted agreement between the US and China to halt tariffs in all probability will set the mood for the market this week.
Last week, the build-up of expectations of a trade truce, Fed chief’s dovish undertone on rate hikes, softer oilNSE -7.75 % prices and a stronger rupee gave enough fodder to the bulls.
The Sensex and the Nifty posted gains on all five sessions just gone by, climbing 3.47 per cent and 3.32 per cent, respectively, on a weekly basis.
With this, November turned out to be the best month for the BSE and NSE benchmarks since July, with a monthly gain of 5.09 per cent and 4.72 per cent, respectively.
The coming week will see some key events and macro numbers setting course of the market for the near term. Let’s take a quick look.
Trump-Xi smoke peace pipe: Finally, they did. US President Donald Trump and Chinese President Xi Jinping agreed to halt new tariffs as both nations worked on the goal of reaching an agreement within 90 days, the White House said on Saturday. Trump agreed not to boost tariffs on $200 billion of Chinese goods to 25 per cent on January 1 as announced earlier, as China agreed to buy an unspecified but “very substantial” amount of agricultural, energy, industrial and other products,according to a Reuters report.
Trade frictions had emerged as one of the major sticking points for financial markets the world over market in recent times and played a key role in triggering a spell of weakness in emerging markets.