Crucial Economic Data in Early April Shapes Investor Sentiment: Report
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Synopsis
As April begins, investor sentiment is poised for critical shifts with the release of key economic data. The upcoming reports on manufacturing, employment trends, and economic activity will guide market movements and expectations for future policy changes.
Key Takeaways
- April brings crucial economic data releases.
- Focus on US manufacturing and employment reports.
- China's PMI data to influence global markets.
- Investor sentiment impacted by tariff policy developments.
- Foreign investment trends remain strong.
New Delhi, March 31 (NationPress) The start of April is set to be pivotal for investor sentiment, as significant economic data releases will shed light on global manufacturing, job trends, and overall economic activity, according to a report issued on Monday.
As the month commences, attention will turn towards the United States, where the S&P Global Manufacturing PMI will provide insights into business sentiment and industrial production.
Automotive companies are also expected to publish their performance data for March.
On April 2, the S&P Global Manufacturing PMI from India will reveal domestic manufacturing trends, while the US ADP Non-farm Employment Change report will preview private-sector job growth ahead of official labor market statistics,” stated Bajaj Broking Research in their note.
On March 31, China’s Composite PMI and Manufacturing PMI for March will give insights into the nation’s economic status, manufacturing activities, and demand trends, which may affect global markets, especially commodities and industrial sectors.
On April 3, the US Initial Jobless Claims report will be closely monitored as an indicator of labor market strength and potential implications for Federal Reserve policy.
The week will conclude with the US Non-farm Payrolls and Unemployment Rate data on April 4.
These statistics will play a vital role in evaluating the resilience of the labor market and inflationary pressures, thereby influencing Fed rate expectations and market volatility across equities, bonds, and currencies, according to the report.
The markets will also be influenced by developments in India-US tariff policies, particularly following US President Donald Trump’s announcement of a 25% tariff on finished vehicle imports effective April 3, alongside comments from US Fed Chair Powell.
In the meantime, foreign investors have maintained their buying momentum. Between March 24 and 28, foreign institutional investors (FIIs) poured in Rs 17,426 crore, while domestic institutional investors (DIIs) invested Rs 6,797 crore in equities.
All attention is now on the upcoming US announcements regarding potential tariff restrictions and a possible rate cut by the RBI during its review meeting.
