JPMorgan Cuts Gold Price Forecast, Sees Bullion Reaching $4,500 by End of 2026 
Goldman Sachs Raises USD/JPY Forecast, Sees Yen Weakness Persist Through 2027 
Goldman Sachs Flags 3 Key Risks Ahead of Europe’s Earnings Season 
Bank of America Upgrades T-Mobile to Buy, Says LEO Satellite Fears Are Overdone 
Gold Pulls Back After Hitting $4,180 as Geopolitical Risk Sends Crude Higher 
Morgan Stanley Says China’s Reusable Rocket Progress Poses Long-Term Challenge to SpaceX 
This week, Reserve Bank of India (RBI) led by eminent economist Raghuram Rajan took unprecedented step to reduce policy rates by 50 basis points (bps) compared to market expectations of just 25 bps.
RBI pointed at lower inflation giving it ample room to tackle headwinds from China, slowdown in exports and weaker corporate investments with greater policy easing.
Today manufacturing PMI report suggests RBI may have done the right thing.
- India's manufacturing PMI dropped to 51.2, seven month low, down from 52.3 in August.
- Business is increasing at slower rate, reducing output of firms.
- Business from abroad grew at slowest pace in 24 months.
- Purchasing activity rose at weakest pace since December 2013.
- PMI report overall was pretty bad with slower increase in new orders leading to reduction in employment.
Though both economist and market participants agree that India is in much better position than most of it emerging market peers including China, but it is not insulated to further slowdown in China and rout in commodity prices.
Greater concerns are corporate debt levels and higher non-performing assets at the banks.
Indian Rupee however is well bid since RBI reduced rates. INR is currently trading at 65.5, down just 4% against Dollar, so far this year.
