Low US weekly unemployment claims point to stable labor market

Global macro data, especially from the US, significantly influences FII sentiment and capital flows into emerging markets like India. Stable US economic conditions generally support risk-on appetite.

• •New applications for U.S. unemployment benefits rose slightly last week.
• •This suggests the labor market remains stable.
• •The stable labor market likely gives the Federal Reserve scope to hold interest rates steady.
• •The Fed is monitoring inflation risks from the conflict in the Middle East.
• •Risk flag: Escalation of Middle East conflict leading to higher oil prices and global inflation.