Trump Wants 1% Rates, Markets Watch for Big Moves This Week, Says PL Capital
- 30th June 2025
- 01:00:00 PM
- 3 min read
Mumbai | June 30 – Donald Trump is back in the headlines, calling for US rates to be slashed to 1% while taking a swipe at the Fed for choking growth. “The Fed is holding the economy back,” Trump said. Markets will track the chatter as a data-heavy week kicks off, says PL Capital.
The Dow closed up 1% on Friday, with Asian stocks and US futures opening firm as trade talks make slow progress. Oil just saw its steepest weekly drop in three years, while European gas prices posted their biggest retreat in nearly two. That’s a breather on the inflation front, but OPEC+ meets this week, so energy traders aren’t switching off yet.
Japan’s factory output missed street expectations, with US tariffs clearly biting. Another reminder that trade tensions continue to lurk in the background.
Defence Spend Story Getting Bigger
PL Capital notes that defence budgets are seeing a structural lift. Canada signed a deal with the EU for joint weapons procurement, following the UK’s move. NATO is pushing members to raise defence spend to 3.5% of GDP, adding ~$800 billion annually. This could tighten public finances, drive divergence between developed and emerging markets, and create a hyper-growth runway for European defence manufacturers.
India’s Credit Push
Back home, PSU banks have been nudged to step up credit disbursals to push FY25 loan growth past last year’s numbers. Asset quality is holding up, with net NPAs down to 0.52%, setting the stage for credit momentum if the macro holds.
Stocks on Radar
PL Capital highlights key movers:
- JB Chemicals: Torrent Pharma to acquire a controlling stake at ₹25,689 crore valuation. Open offer at ₹1,639/share.
- BHEL: Wins ₹6,500 crore Adani Power order for 6 thermal units.
- Jyoti CNC: Block deal of 1.37 crore shares (~6% stake) at ₹1,125.6/share.
- Gujarat Gas: Propane/butane price cuts by Aramco may ease Morbi fuel prices.
- RBL Bank: Citi ups TP to ₹285, sees RoA improvement as credit costs normalise.
- Neuland Labs: US FDA clears facility with EIR.
- Titagarh Rail: Bags ₹430 crore Pune Metro order.
- ITD Cementation: Wins nearly ₹580 crore Abu Dhabi marine contract.
- Cochin Shipyard: Nabs up to ₹250 crore tug order.
- Waaree Energies: Bags 540 MW solar module order from US client.
- Prime Focus: Block deal at ₹113/share, 1.51 crore shares changing hands.
Nvidia Nearing $4 Trillion Club
Two years after hitting $1 trillion, Nvidia is closing in on a $4 trillion valuation, driven by its AI chip dominance, a reminder that tech momentum remains a live wire in global markets.
Iran’s Crossroads
Meanwhile, Iran’s nuclear drama continues, with US attacks reportedly damaging enrichment sites. Trump says the strikes “obliterated” them, while reports vary on the actual setbacks. PL Capital notes geopolitical tensions here could keep oil volatility alive in the coming weeks.
What’s Next?
Trump’s rate-cut call adds a fresh layer of intrigue to Fed-watch, and with a heavy macro data calendar, OPEC+ meet, and sector churn, volatility could tick higher. PL Capital advises tracking flows, rate expectations, and energy market cues closely to align with the next market move.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
