Though 2023 started on a weak note for stock investors, the outlook is expected to be bright globally as the year proceeds, fueled partly by the reopening of the Chinese economy after the Covid-induced lockdown.
Indian stock indices have extended losses for the second straight session, largely due to continued selling by foreign investors on concerns over higher stock valuations.
The US central bank's policy rate is now in a target of 4.25-4.50 per cent, the highest level in 15 years, and notably, it was near zero in the early part of 2022.
US Federal Reserve Governor Lisa D. Cook has said inflation in the US remains "far too high" despite some encouraging signs lately, and the top central bank official termed it as a concern.
The positive outlook for 2023 is despite concerns emanating from the global slowdown and a possible recession in the Western economies due to the unwinding of monetary policy by central banks.
The multinational investment firm said the possible return of inflation to the "comfort zone" will lead to the pausing of monetary policy tightening by central banks.
The US Federal Reserve officials believe it would not be "appropriate" to begin loosening monetary policy stance in terms of interest rate in 2023, Minutes from the latest policy meeting held on December 13-14 showed.
The US Federal Reserve officials believe it would not be "appropriate" to begin loosening monetary policy stance in terms of interest rate in the year 2023.
Monetary policy tightening by various central banks to contain inflation, the war in Ukraine leading to price rise for crude oil and subsequent realignment in the global energy supply chain, and strengthening of the US dollar index kept the Indian currency under pressure in 2022.
Some of the major concerns facing the equity markets are tightening monetary policy by various central banks to contain inflation, recessionary fears and high stock valuations.