India-China relations, from conflict to cautious thaw

• Foreign investors are selling off Indian stocks as they shift their capital toward markets with stronger artificial intelligence growth themes. • Foreign ownership of Indian shares has dropped to a 17-year low due to high valuations.

• Prime Minister Modi and President Xi Jinping are scheduled to meet following a period of strained relations caused by a deadly 2020 border clash. • Both nations reached disengagement pacts that resulted in the withdrawal of troops from several confrontation points along the border.

• Prime Minister Narendra Modi and President Xi Jinping reaffirmed the need for a strategic, long-term perspective on India-China relations during a meeting on Saturday. • The leaders emphasized the importance of border peace and a resolution to boundary questions that is fair, reasonable, and mutually acceptable.

• India and China are experiencing a cautious diplomatic thaw following a period of tension that began with a deadly border clash in 2020. • The Chinese leader is making his first official visit to India in seven years to help stabilize relations between the two Asian powers.

• Prime Minister Modi is preparing to meet President Xi Jinping as bilateral trade between India and China reaches $127.7 billion. • India's trade deficit with China has widened to nearly $100 billion.

• India's trade with China has nearly doubled over the last five years, creating a widening trade deficit for New Delhi. • Some imports appearing to come from other countries are actually Chinese goods that were processed or repackaged in Southeast Asia.

• Market expectations for a Federal Reserve interest rate hike on September 16 shifted toward a base case following new inflation data. • August core CPI rose 0.3% month-over-month, pushing CME odds of a 25 basis point hike from 59.4% a week ago to 86.5% after the release.

• Indian stock markets face potential volatility this week due to the US Federal Reserve's monetary policy meeting and the BRICS summit. • The US Federal Open Market Committee will meet on September 15 and 16 to decide on interest rates and economic projections.

• U.S. stock indices declined this week as markets reacted to Oracle's earnings report and rising inflation data. • The Dow Jones Industrial Average fell 1.6% to 52,573, while the Russell 2000 dropped 2.4% to 2,904.

• U.S. inflation remained at 3.4% in August, increasing pressure on the Federal Reserve to raise interest rates. • The Federal Open Market Committee will meet next week to decide on a rate hike following a surge in fuel prices caused by the war in Iran.

• Private equity firms, family offices, and institutional investors have rapidly increased their acquisitions and investments in the dermatology market over the last decade. • Financial sponsors typically establish a platform investment in an existing dermatology group to serve as a strategic buyer for further add-on acquisitions.