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Market Review:

US

The three main Wall Street indexes all closed down on Wednesday, as U.S. Federal Reserve officials unnerved investors with indications that the central bank could begin rising interest rates in 2023, a year earlier than expected.

Asia:

Asian markets looked set for a rough ride on Thursday after the U.S. Federal Reserve stunned investors by signalling it might raise interest rates at a much faster pace than assumed, sending yields and the dollar sharply higher.

India:

Sensex, Nifty closed over 0.50% lower on Wednesday. Asian stocks markets closed lower as all eyes are on the outcome of the Fed's two-day meeting which could indicate the central bank's stance on liquidity mop up amid rising inflation and economic recovery. The Sensex closed at 52,501.98, down 271.07 points, or 0.51%, while Nifty was at 15,767.55, down 101.70 points, or 0.64%. Market is expected to open gap down and likely to witness profit booking during the day.

Global Economy:

Australian job creation far outstripped expectations in May as unemployment dropped to prepandemic lows, a major upside surprise that suggested the economy had the momentum to cope with any temporary coronavirus lockdowns. Thursday's showed 115,200 net new jobs were created in May, blowing past forecasts for a 30,000 gain. Full-time jobs jumped by 97,500 and hours worked also rose strongly. Unemployment dropped to 5.1%, from 5.5% in April, extending a remarkable recovery from a high of 7.5% hit last July when lockdowns tipped the economy into recession. Business confidence levels of Japanese manufacturers and service sector firms were little changed in June from the prior month, highlighting the fragile and uneven state of the country's coronavirus recovery. While manufacturers' mood remained positive thanks to strong overseas demand, it was forecast to be slightly lower three months from this month,

Commodities:

Crude oil prices fell on Thursday pressured by a stronger U.S. dollar, but losses were limited by a big drop in crude oil inventories in the US, the world's top oil consumer. Gold prices hovered near a more than one-month low on Thursday as the dollar and U.S. Treasury yields jumped after Fed projected interest rate hikes sooner than expected.

Currency:

The dollar rose to its highest level in almost two months versus major peers on Thursday after the Fed brought forward its projections for the first post-pandemic interest rate hikes into 2023, citing an improved health situation and dropping a long-standing reference that the crisis was weighing on the economy.

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