neutral
Recently
US inflation data reinforces expectations of extended Fed pause
US inflation meeting estimates has strengthened expectations of a prolonged Fed pause, influencing global equity sentiment and capital flows.
US consumer price inflation for December came in at 2.7% year on year, matching market expectations and reinforcing views that the Federal Reserve may delay rate cuts until mid 2026. Following the data, US equities weakened, with the S&P 500 slipping, while the dollar strengthened modestly. Global investors are reassessing capital flows toward emerging markets, including India, as higher for longer US rates could influence risk appetite and currency dynamics.