Stock market indices Sensex and Nifty predicted to rise following solid GDP figures

The global economic landscape showed a mix of trends and events in August, with various regions witnessing fluctuations in their respective markets.

In Asian trade, the U.S. dollar weakened, indicating a shift in currency dynamics. Meanwhile, China's manufacturing activity shrank for a fifth consecutive month due to weak demand and trade uncertainty. This contraction was reflected in the performance of the Chinese stock market, as the Shanghai Composite index dipped during the month.

Across the Atlantic, European stocks took a hit due to several factors. The ongoing clashes in Gaza and Ukraine, political uncertainty in France, and broader geopolitical tensions weighed heavily on investor sentiment. Major European indices such as the German DAX, France's CAC 40, and the U.K.'s FTSE 100 all experienced declines.

In positive news, the Indian economy continued to show strength, with the GDP growth for the first quarter of the year reaching 7.8 percent, surpassing the consensus estimate of 6.8 percent. This robust growth is a testament to the Indian economy's resilience and potential for further growth.

On the political front, Prime Minister Narendra Modi visited China for the first time in seven years, marking a significant diplomatic event between the two nations.

In the United States, the tech-heavy Nasdaq Composite and the S&P 500 experienced volatility. The Nasdaq Composite registered a loss of 1.2 percent due to weak earnings at a large chip designer, while the S&P 500 declined 0.6 percent but managed to notch its fourth winning month in a row. The pan European STOXX 600 also gave up 0.6 percent.

The U.S. economy saw a rise in key inflation measures, with data showing that core PCE, a key inflation measure watched by the Federal Reserve, increased by 2.9 percent in July, reaching its highest level since February. This inflationary pressure has prompted discussions about potential interest rate hikes.

In a significant legal development, a U.S. federal appeals court ruled that most of President Donald Trump's tariffs were illegal. The U.S. Court of Appeals for the Federal Circuit delivered a legal setback against Trump's presidential authority regarding trade tariffs, stating that he had exceeded his authority under the IEEPA law to impose tariffs, as tariff powers constitutionally belong to Congress.

The U.S. Commerce Department also revoked exemptions for Intel, Samsung, and SK Hynix to import advanced chipmaking tools for use at their Chinese fabs without prior approval. This move is expected to further complicate U.S.-China trade relations.

Gold held firm near $3,460 per ounce due to Fed rate cut hopes, as investors continue to monitor the central bank's monetary policy decisions.

Asian markets showed a mixed picture this morning, with some markets experiencing gains while others continued to struggle. Brent crude futures extended declines, notching their first monthly loss since April due to concerns over a potential glut.

In a tweet on Truth Social, former President Donald Trump warned that without the tariffs, the country would be "completely destroyed" and its military power "instantly obliterated." However, the legal and economic landscape seems to suggest otherwise, with the tariffs remaining in place until October 14, allowing the Trump administration to appeal to the Supreme Court.

This summary provides a snapshot of the global economic and political landscape in August, highlighting key trends and events that have shaped the market dynamics. As always, investors and policymakers will need to navigate this complex environment with caution and strategic foresight.

Stock market indices Sensex and Nifty predicted to rise following solid GDP figures