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Market Review

US:

US stocks ended at fresh record highs on Wednesday, gaining steam into the close on growing conviction that the Fed will start cutting interest rates again next month.

Asia:

Asian stocks traded in a narrow range at Thursday’s open, easing after three days of gains driven by bets on a Federal Reserve interest rate cut next month.

India:

Stock markets rebounded on Wednesday with benchmark Sensex closing higher by 304 points on buying in metal, auto and pharma shares as steady US inflation data propelled a sharp rally in global markets. Market is expected to open on a flattish note and likely to witness range bound move during the day.

Global economy:

China’s new yuan loans contracted in July for the first time in 20 years as the economy struggled, falling well short of analysts’ forecasts, but improvements in broader credit growth suggest the central bank is in no rush to ease policy. While new loans typically fall in July after strong gains in June when banks strive to meet quarterly targets, the latest reading was well below even the most pessimistic analyst’s forecasts, pointing to weak private sector demand as Beijing tries to negotiate a durable trade deal with Washington. "The July credit data was weak, but money supply exceeded expectations, reflecting the impact of last year’s low base and debt resolution efforts.

A recovery in Britain’s housing market lost steam at the fastest pace in a year last month as some buyers worried about possible tax increases in finance minister Rachel Reeves’ next budget. Measures of buyer demand and agreed sales turned negative, the near-term sales outlook was flat and more surveyors reported house prices falling than rising, RICS said in a monthly report.

Commodities:

Oil prices edged higher on Thursday, regaining ground after a sell-off in the previous session, with the upcoming meeting between U.S. President Trump and his Russian counterpart Putin raising risk premiums in the market.

Gold rose on Wednesday, lifted by a weaker dollar and falling Treasury yields, as mild U.S. inflation data cemented expectations for a Federal Reserve rate cut in September and nudged up bets on additional easing later this year.

Currency:

The dollar weakened on Wednesday after a tame reading on U.S. inflation bolstered expectations of a Federal Reserve rate cut next month, with President Donald Trump's attempts to extend his grip over U.S. institutions also undermining the currency

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