August has been weak for global equity markets

New Delhi, August 28 August has been weak for global equity markets. In the US market, S&P 500 is down by 4 per cent so far this month, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

This weakness has impacted all other markets including the Indian market where Nifty is down by around 2 per cent so far in August, he said.

The global economic scenario and the growth, inflation and interest rate trends in the US will continue to determine stock market trends globally.

US Federal Reserve chair Jerome Powell’s candid remark at Jackson Hole that “we are navigating by the stars under cloudy skies”, is an indicator of the uncertainty surrounding the global economy and markets.

However, the Powell commentary was neutral without any market-moving hawkish or dovish tones, he added.

The market will be keenly watching for signals from the RIL AGM on Monday, Vijayakumar noted.

The high US bond yields and the dollar index above 104 are near-term negatives for capital flows to emerging markets like India, he said.

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