As we scan the market for the key drivers of this market for the next few days , it becomes evident that the bulk of the news flow will be from Oil and the Fed .
The global equity markets are at all time high , mainly driven by liquidity , higher Oil prices and improving economic news from USA .
However Oil seems to have some strong resistance at USD 47. Also the rally is mainly driven by expectations of some action from the oil producing counties . Thus we have to watch closely for any news flows from this . As on date it looks like we may see some correction in Oil before it stabilizes at around USD 45.
Will the Fed raise interest rates this year ?
The key to this question is another question :
Can the Fed be at odds with all other central banks , while UK and Japan continues to reduce interest rates do the Fed really need to rush through its Interest rate hike ?
However we have to understand that with improving fundamentals and delay in Britexit , Fed may act sooner than expected . In such a scenario the equity market will see some meaningful correction .
India equity markets also took a breather after the run up . With GST being built into the prices of equity , the key drivers of this market will be global liquidity .
Investors and traders may like to wait to see how the situation pans out before jumping in .